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

To: SofaSpud who wrote (11716)	7/13/1998 8:13:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Kelman Technologies Inc. Awarded Two Projects Worth $1.6 Million KELMAN SIGNS $1.6M IN SEISMIC PROCESSING CONTRACTS CALGARY July 13 /CNW/ - Kelman Technologies Inc. has recently been awarded two significant seismic processing projects worth $1,640,000 with work to be completed in the second half of this year. A contract worth $860,000 providing 3-D land seismic processing for a 900 square kilometre location in Northern Mexico on behalf of Pemex, the national Mexican oil company, has been signed by Kelman's Houston centre. The contract represents continued successful penetration by Kelman into the international market as well as further expansion of Kelman's Houston centre. Kelman has further enhanced the market acceptance of its marine technology with the signing of a 2-D marine seismic processing contract worth $780,000 with Geophysical Service Incorporated. This project is the largest offshore marine speculative seismic survey in Canada, covering when completed more than 20,000 linear kilometres from the Nova Scotian Shelf to the Newfoundland Grand Banks. These contracts are anticipated to offset the expected reduction of exploration activity in western Canada related to the drop in crude oil prices, and result in continued revenue growth in Kelman's thrust into the international and marine seismic processing markets. Kelman Technologies Inc. is a publicly traded Canadian company listed on the Toronto Stock Exchange, trading symbol KTI, with offices in Calgary, Alberta and Houston, Texas.

To: SofaSpud who wrote (11716)	7/13/1998 8:18:00 PM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

FINANCING / Kintail Energy Raises $1.5 Million KINTAIL ENERGY CLOSES FINANCING CALGARY, July 13 /CNW/ - KINTAIL ENERGY INC. announces that it has successfully closed a private placement of 2,044,434 shares and 1,022,217 warrants for gross proceeds of $1,533,325. This will be used towards the acquisition of previously announced natural gas properties in the Watelet area of Central Alberta which consists of production of approximately 5 MMCFE/d and 30 sections of undeveloped land with an average working interest of 80%. The financing was done at a price of $ 0.75 per share and includes one half warrant per share. Each whole warrant entitles the holder to acquire one common share at a price of $ 1.00 for a period of one year. The common shares, warrants and common shares issued on exercise of the warrants are restricted from trading for a period of one year. No commissions were paid on the fund raising and after expenses of the issue, estimated at $ 5,000, net proceeds will be approximately $ 1,528,000. Kintail Energy Inc. is an aggressive exploration and production Company, which trades on the Alberta Stock Exchange under the symbol ''KTE''.

To: SofaSpud who wrote (11716)	7/14/1998 9:12:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Union Pacific Resources Has Venezuela Success UNION PACIFIC RESOURCES GROUP INC. ANNOUNCES CONTINUED SUCCESS IN VENEZUELA FORT WORTH, Texas, July 14 /CNW/ -- Union Pacific Resources Group Inc. (NYSE: UPR) today announced its fifth exploratory success on the Oritupano-Leona concession in Eastern Venezuela under PDVSA's Operating Service Agreement. The ORI-166E is producing at 2,200 barrels of oil per day (BOPD). The preliminary proved reserves for the new field are estimated at 13 million barrels of oil (MMBO) with additional possible reserves estimated at 22 MMBO. UPR has a 45 percent working interest in this concession. This discovery extends UPR's series of exploratory successes identified within a 260 square mile 3-D seismic area which was shot in 1995. Plans are to drill two additional wells this year to further delineate the field. In addition, a 3-D seismic survey is planned for 1999 that will complete shooting on the concession. "UPR is excited by the number of high quality exploratory prospects and field extension opportunities produced by the existing 3-D survey," said Jack L. Messman, UPR's Chairman and CEO. "Since acquiring the block in 1994, the operating consortium consisting of UPR, Perez Companc, the operator, and Corod de Venezuela has drilled over 100 development and exploration wells with a 100 percent success rate." Through an aggressive drilling, reactivation and recompletion program, the production on the block has grown from 9,000 BOPD in March, 1994 to 45,000 BOPD. The area also represents an excellent opportunity for horizontal drilling and production optimization. "UPR sees Venezuela as a significant growth area," said George Lindahl III, President and COO. "The Company also owns a 50 percent operated working interest in the West Guarico reactivation concession in the central part of the country. A drilling program is expected to commence at West Guarico during the third quarter of 1998 that will target prospects identified from the 165 square mile 3-D seismic program acquired earlier in 1998." Lindahl further said that, "UPR has a non-operated 35 percent working interest in the Delta Centro exploratory concession where the first exploratory well is scheduled for late this year or early 1999." Union Pacific Resources is one of the nation's largest independent oil and gas exploration and production companies. Based in Fort Worth, Texas, UPR has been the #1 domestic driller for the past six years and is the #1 gas producer in the state of Texas.

To: SofaSpud who wrote (11716)	7/16/1998 5:32:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Blue Range Resources Annual Report (PartI) BLUE RANGE RESOURCE CORPORATION ANNOUNCES 1998 YEAR END RESULTS CALGARY, July 15 /CNW/ - Blue Range Resource Corporation (''BRRC'') today announced its 1998 year end results. Comparative information for the previous two years is also provided as follows: Twelve Months ended March 31 1998 1997 1996 Financial ($ thousand) ------------------------------------------------------------------------- Oil and gas revenues 86,878 76,453 57,130 Funds flow from operations 43,124 43,808 32,602 Net earnings 2,973 9,868 4,976 Capital expenditures 100,057 109,833 117,932 Working capital 5,939 3,270 17,658 Long-term debt 123,464 91,361 56,872 Shareholders' equity 230,233 209,116 185,765 Common shares outstanding 33,285 30,299 27,749 Avg. shares outstanding 31,784 28,688 22,970 Operations ------------------------------------------------------------------------- Gas production (mmcf/d) 108.1 93.1 79.1 Average gas price ($/mcf) 1.66 1.57 1.40 NGL production (bbl/d) 1,592 1,500 1,382 Average NGL price ($/bbl) 20.38 22.54 16.67 Oil production (bbl/d) 1,111 1,149 974 Average oil price ($/bbl) 23.05 25.92 23.66 Average Production (BOE/d) 13,513 11,963 10,266 Land ------------------------------------------------------------------------- Net land holdings (thousand acres) Undeveloped 399.0 347.1 220.1 Developed 163.1 166.5 115.7 ------ ------ ------ Total 562.1 513.6 335.8 ______ ______ ______ ------ ------ ------ Per Share ($ basic) ------------------------------------------------------------------------- Funds flow per share 1.36 1.53 1.42 Earnings per share 0.09 0.34 0.22 Drilling Results - Gross Wells ------------------------------------------------------------------------- Gas Wells 32 34 49 Oil Wells 15 20 25 Dry & Abandoned 17 12 10 -- -- -- Total 64 66 84 __ __ __ -- -- -- Reserves ------------------------------------------------------------------------- Natural gas - BCF Proven 304.6 352.7 278.4 Probable 190.7 168.8 116.9 ------ ------ ------ Total 495.3 521.5 395.3 ______ ______ ______ ------ ------ ------ Oil & NGL - MStb Proven 9,772 11,949 10,520 Probable 5,832 4,934 5,563 ------ ------ ------ Total 15,604 16,883 16,083 ______ ______ ______ ------ ------ ------ Reserve Value ($million) - 15% DCF ------------------------------------------------------------------------- Total Proven & Probable 381.1 377.9 348.0 ______ ______ ______ ------ ------ ------ ------------------------------------------------------------------------- The following represents the Audited Consolidated Statements of Earnings for the years ended March 31, 1998, and 1997 and the Unaudited Consolidated Statements of Earnings for the Three Month Periods ended March 31, 1998, and 1997. Twelve Months Three Months ----------------- ---------------- 1998 1997 1998 1997 ($000) ($000) ($000) ($000) REVENUE Petroleum and natural gas sales 86,878 76,453 24,175 22,398 Royalties (12,950) (9,299) (5,238) (3,445) Alberta royalty tax credit 1,191 1,625 (13) (14) -------- -------- -------- -------- 75,119 68,779 18,924 18,939 Other 5,283 5,066 3,712 3,120 -------- -------- -------- -------- 80,402 73,845 22,636 22,059 -------- -------- -------- -------- EXPENSES Production 26,978 20,860 6,572 5,413 General and administrative 2,748 3,261 226 827 Interest on long-term debt 6,472 5,078 1,731 1,113 Depletion and depreciation 35,260 27,619 11,392 7,401 -------- -------- -------- -------- 71,458 56,818 19,921 14,754 -------- -------- -------- -------- NET EARNINGS BEFORE INCOME TAXES 8,944 17,027 2,715 7,305 Current income taxes 1,016 765 427 155 Deferred income taxes 4,955 6,394 2,619 3,542 -------- -------- -------- -------- NET EARNINGS (LOSS) 2,973 9,868 (331) 3,608 -------- -------- -------- -------- -------- -------- -------- -------- Funds flow from operations 43,124 43,808 13,653 14,553 -------- -------- -------- -------- -------- -------- -------- -------- Funds flow from operations per share 1.36(x) 1.53(xx) 0.41 0.48 -------- -------- -------- -------- -------- -------- -------- -------- Earnings (loss) per share 0.09(x) 0.34(xx) (0.01) 0.12 -------- -------- -------- -------- -------- -------- -------- -------- (x) 1998 Fully diluted funds flow from operations per share is $1.27 and earnings per share is $0.09. (xx)1997 Fully diluted funds flow from operations per share is $1.45 and earnings per share is $0.34. The following represents the Audited Consolidated Balance Sheets as at March 31, 1998 and 1997. 1998 1997 ---- ---- ($000) ($000) ASSETS Current assets: Cash - - Investments 1,114 523 Accounts receivable 37,107 53,162 Inventory 2,578 721 Current portion of notes receivable 4,086 1,690 ------- ------- 44,885 56,096 Notes receivable 3,217 4,362 Capital assets 369,212 311,114 Long-term investments 556 1,481 ------- ------- 417,870 373,053 _______ _______ _______ _______ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities 38,219 52,554 Current portion of long-term debt 727 272 ------- ------- 38,946 52,826 Long-term debt 123,464 91,361 Well abandonment and site restoration 3,403 2,302 Deferred income taxes 21,824 17,448 ------- ------- 187,637 163,937 Shareholders' equity: Share capital 195,329 177,185 Retained earnings 34,904 31,931 ------- ------- 230,233 209,116 ------- ------- 417,870 373,053 ------- ------- ------- ------- The following represents the Audited Consolidated Statements of Changes in Financial Position for the years ended March 31, 1998 and 1997: 1998 1997 ($000) ($000) Cash provided by (used in) Operations: Net earnings for the year 2,973 9,868 Non-cash items: Depletion and depreciation 35,260 27,619 Deferred income taxes 4,955 6,394 Equity in income of affiliate (64) (73) ------- ------- Funds flow from operations 43,124 43,808 Changes in non-cash working capital items related to operations (137) 9,323 -------- -------- 42,987 53,131 Investing: Acquisitions - (6,707) Capital asset additions (126,141) (120,161) Proceeds on disposal of capital assets 26,084 17,035 Site restoration costs (162) (107) Investments (759) 133 Long-term investments 989 (505) Notes receivable (1,251) 4,756 ----------- ----------- (101,240) (105,556) Financing: Current portion of long-term debt 455 (465) Long-term debt, net 32,103 33,079 Common shares (net of issue costs) 25,695 19,807 ------ ------ 58,253 52,421 ------ ------ ------ ------ Increase (decrease) in cash - (4) Cash position, beginning of year - 4 ------ ------ Cash position, end of year - - ------ ------ COMPARISON OF ACTUAL TO ESTIMATED RESULTS FOR PERIOD ENDED MARCH 31, 1998 Actual Estimate % Difference ------ -------- ------------ Gas production (mmcf/d) 108.1 115.0 (6.0) Average gas price ($/mcf) 1.66 1.65 1.0 NGL production (bbl/d) 1,592 1,725 (7.7) Average NGL price ($/bbl) 20.38 20.00 1.9 Oil production (bbl/d) 1,111 1,100 1.0 Average oil price ($/bbl) 23.05 23.00 0.2 Funds flow from operations (000) 43,124 46,600 (7.5) Funds flow from operations ($ per share) 1.36 1.47 (7.5) RESERVE RECONCILIATION The following table provides a summary of the changes in reserves in the two most recent fiscal years. ------------------------------------------------------------------------- Natural Gas NGLs (BCF) (MBBL) Proved Probable Proved Probable March 31, 1996 278.4 116.9 5,412 2,182 ------------------------------------------------------------------------- Discoveries / Extensions 39.8 24.2 629 289 Acquisitions / Dispositions 91.9 24.8 1,154 433 Production (34.0) 0.0 (547) 0 Revisions (23.4) 3.0 103 300 ------------------------------------------------------------------------- March 31, 1997 352.7 168.9 6,751 3,204 ------------------------------------------------------------------------- Discoveries / Extensions 53.5 39.1 711 377 Acquisitions / Dispositions (18.5) (9.8) (439) (164) Production (39.5) 0 (581) 0 Revisions (43.6) (7.5) (1,399) (376) ------------------------------------------------------------------------- March 31, 1998 304.6 190.7 5,043 3,041 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Crude Oil BOE (MBBL) (MBOE) Proved Probable Proved Probable March 31, 1996 5,108 3,381 38,357 17,253 ------------------------------------------------------------------------- Discoveries / Extensions 1,187 323 5,796 3,032 Acquisitions / Dispositions 18 27 10,362 2,940 Production (419) 0 (4,366) - Revisions (696) (2,001) (2,933) (1,401) ------------------------------------------------------------------------- March 31, 1997 5,198 1,730 47,219 21,824 ------------------------------------------------------------------------- Discoveries / Extensions 1,352 1,479 7,413 5,766 Acquisitions / Dispositions 195 132 (2,094) (1,012) Production (406) 0 (4,935) 0 Revisions (1,610) (550) (7,369) (1,676) ------------------------------------------------------------------------- March 31, 1998 4,729 2,791 40,234 24,902 ------------------------------------------------------------------------- RESERVE ALLOCATION BY AREA The following table sets forth reserves and value by area as at March 31, 1998 and 1997. The table represents the Company's reserve allocation after consideration for discoveries/extensions, acquisitions/dispositions, production, and revisions. 1998 --------------------------- Gas Oil & NGL NPV at 15% (Pre-tax) (Bcf) (MMBL) ($000) Northeast BC/Clear Hills 343 5,365 230,665 Central Alberta 121 7,778 111,336 Valleyview 30 2,461 32,880 --- ------- ---------- 495 15,604 374,881 ARTC - - 6,183 --------------------------- TOTAL 495 15,604 381,064 --------------------------- --------------------------- 1997 --------------------------- Gas Oil & NGL NPV at 15% (Pre-tax) (Bcf) (MMBL) ($000) Northeast BC/Clear Hills 357 5,449 188,590 Central Alberta 152 11,129 173,180 Valleyview 13 305 10,435 --- ------- -------- 522 16,883 372,205 ARTC - - 5,763 -------------------------- 522 16,883 377,968 -------------------------- -------------------------- NET ASSET VALUE The following table provides the changes to the Company's net asset value per share (''NAV'') during 1998. The 1997 NAV has been restated to account for a 50% reduction in value on account of risk for the company's probable reserves. $ Thousands 1998 1997 Change ------------------------------------------------------------------------ Proved + Probable reserve value (15% Pre-tax discount) 381.1 377.9 3.2 50% reduction for Probable risk (15% Pre-tax discount) (63.7) (53.5) (10.2) ------ ------ ------ Net Reserve Value 317.4 324.4 (7.0) Undeveloped Land 50.3 31.2 19.1 Long Term Debt and working capital (117.5) (88.1) (29.4) ------------------------------------------------------------------------ Total 250.2 267.5 17.3 ------------------------------------------------------------------------ Common Shares Issued as of March 31, 1998 (millions) 33.3 30.3 3.0 ---- ---- ----- Net Asset Value Per Common Share ($/Share) 7.51 8.83 (1.32) ---- ---- ----- ---- ---- -----

To: SofaSpud who wrote (11716)	7/16/1998 7:13:00 AM
From: Kerm Yerman	Respond to of 15196

MERGERS - ACQUISITIONS / Magin Energy Inc. Completes takeover of Torrington Resources MAGIN COMPLETES TAKEOVER BID FOR TORRINGTON RESOURCES LTD. CALGARY, July 15 /CNW/ - Magin Energy Inc. announced today that 21.8 million shares were tendered to its takeover bid for the common shares of Torrington Resources Limited (representing approximately 97%). Magin intends to take up and pay for all shares deposited under the bid upon receipt of regulatory approvals which Magin expects to obtain within the next 2 days. Magin anticipates exercising its statutory right of acquisition to acquire the remaining Torrington shares not deposited under the bid. After the exercise of the statutory right of acquisition, Magin expects that approximately 10 million Magin common shares and 5 million Magin warrants will be issued to complete the takeover. Each warrant entitles the holder to purchase one Magin common share for $9.50 at any time until September 1, 2000, subject to Magin's right to accelerate the expiry date in certain circumstances. Magin expects the warrants to commence trading on The Alberta Stock Exchange within the next week. Combined with Torrington, Magin now has proven and probable reserves in excess of 40 million barrels of oil equivalent and undeveloped acreage of 540,000 net acres. With the Torrington acquisition, Magin will have 26.99 million issued and outstanding common shares. The total capitalization of Magin is in excess of $250 million. Magin common shares trade on The Toronto Stock Exchange under the trading symbol ''MGY'' and the warrants will trade on The Alberta Stock Exchange under the trading symbol ''MGY.WT''.

To: SofaSpud who wrote (11716)	7/16/1998 7:16:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Chauvco Resources International Ltd. Suspends Operations At Remboue Field CHAUVCO SUSPENDS PRODUCTION AT REMBOUE FIELD CALGARY, July 15 /CNW/ - Chauvco Resources International Ltd. (''Chauvco'') announces that it has suspended production operations at its Remboue field in Gabon, west central Africa. While the Company has taken steps to significantly reduce production, transportation and storage costs, cash flow from operations remains negative due to continued low oil prices and declining production levels. Chauvco continues to seek to raise funds through the negotiation of a joint venture program for its exploration acreage in Gabon. Negotiations to settle on payment terms are also continuing with the creditors of the Company.

To: SofaSpud who wrote (11716)	7/16/1998 7:26:00 AM
From: Kerm Yerman	Respond to of 15196

REPORTS / Alberta Energy and Utilities Board ReleaseS ''Alberta's Energy Resources - 1997 in Review'' EUB RELEASES ANNUAL STATISTICAL REVIEW OF ALBERTA'S ENERGY SECTOR CALGARY, July 15 /CNW/ - The Alberta Energy and Utilities Board (EUB) today released ''Alberta's Energy Resources - 1997 in Review''. This publication provides a statistical review of the activities of the province's energy sector during 1997. It covers conventional crude oil, natural gas, oil sands, coal, sulphur, pipelines and electrical generation, including highlights of data concerning year-end production, reserves, drilling activity, and sales and markets for Alberta's energy resources. Highlights In 1997, Alberta's energy resources sectors enjoyed a robust performance for the second consecutive year. Total hydrocarbon sales rose 2 per cent to $26.79 billion, up from the strong 1996 showing of $26.27 billion, the result of consistent oil and gas prices. Led by an upturn in oil sands and conventional oil development drilling, the total number of wells drilled in Alberta in 1997 reached a record 13 212. This is a 2816 well increase over the previous record of 10 396 wells drilled in 1996. Oil sands drilling increased by 25.6% in 1997 to 2700 wells, 551 wells greater than in 1996. Oil sands drilling has now set records three years in a row. Once again, bitumen and synthetic crude oil production reached record levels in 1997. Production was up 18.6 per cent to 30.6 million cubic metres. Oil from oil sands now accounts for nearly 34 per cent of Alberta's total oil production. Production of marketable natural gas rose 1.3 per cent in 1997 to 132.7 billion cubic metres, breaking the 1996 record of 131 billion cubic metres. While rising in overall volumes, gas production increases have slowed in percentage terms. Production growth was 6.6 per cent in 1994; 8.2 per cent in 1995 and 2.9 per cent in 1996. At the end of 1997, Alberta's remaining established reserves of natural gas stood at 1284 billion cubic metres. Alberta sulphur producers found markets for 6.62 million tonnes of the 7.09 million tonnes produced in 1997. Offshore and U.S. markets account for 92 per cent of sulphur sales. Electric generating capacity remained steady 7.72 thousand megawatts, with demand from the biggest electrical energy user, the industrial sector, rising by 3.7 per cent. Overall in 1997, Alberta accounted for 66 per cent of all the energy produced in Canada. The province produces 58 per cent of the nation's conventional oil and pentanes, 80 per cent of its natural gas and gas liquids, 51 per cent of its coal and 100 per cent of its bitumen and synthetic crude. Copies of ''Alberta's Energy Resources - 1997 in Review'' are available through: Information Services, Main Floor, 640 - 5 Avenue S.W. Calgary, Alberta T2P 3G4 This news release is also available on the EUB Website at eub.govab.ca

To: SofaSpud who wrote (11716)	7/16/1998 10:36:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Dynamic Oil Drilling Update DYNAMIC OIL LIMITED ANNOUNCES NEW WELL ON STREAM AT TWO CREEK, ALBERTA AND SECOND ROUND OF GAS WELL TESTING BEGINS AT ST. ALBERT, ALBERTA VANCOUVER, July 16 /CNW/ - DYNAMIC OIL LIMITED NASDAQ: DYOLF VSE: DOL New well on stream at Two Creek, Alberta ---------------------------------------- Dynamic is pleased to announce the start of production from a new Viking gas well at Two Creek, Alberta. The single zone gas well began producing on July 10, 1998 at a rate of 845 thousand cubic feet per day. The gas is rich in natural gas liquids although recovery rates are not available at this time. Dynamic owns a 72% working interest in the well. The well is connected to a gas gathering, compressor and processing facility owned by Summit Resources Limited of Calgary, Alberta which, in turn, is connected to an intra-provincial pipeline system. The selling price will be the daily average spot price for gas at Empress, Alberta. Independent reserve estimates assign Dynamic proved recoverable gas reserves of 220 million cubic feet. Second round of gas well testing begins at St. Albert, Alberta -------------------------------------------------------------- The Company also wishes to announce the start of a second round multi-well testing program at St. Albert. The Operator plans to re-enter four previously suspended oil wells to test multiple Cretaceous-aged zones for gas accumulation. Dynamic owns a 50% working interest in the wells scheduled for testing. In the third and fourth quarters of the fiscal year ended March 31, 1998, the Company and partner, Fletcher Challenge Energy Canada Inc., re-entered five previously suspended oil wells on the property to investigate the potential for shallow Cretaceous-aged gas reserves. The program was successful, adding an estimated 1.078 million barrels of oil equivalent to Dynamic's proved and probable reserves. On Behalf of the Board of Directors ________________ Wayne J. Babcock President The NASDAQ and Vancouver Stock Exchanges have not reviewed nor accepted responsibility for accuracy of this release. Certain statements herein may not be historical facts and may be ''forward looking statements'' under U.S. securities laws. Such statements are based on management's beliefs, as well as assumptions made by information currently available to management. Forward-looking statements include those preceded by the words ''believe,'' ''estimate,'' ''expect,'' ''intend,'' ''will,'' or words of similar expressions, and include reserve estimates of future production, costs per barrel equivalent, commencement of operations and costs savings. Forward-looking statements are subject to risks, uncertainties and other factors that could cause results to differ materially from expected results. Those listed are not exclusive. Reserve estimation is an interpretive process based on drilling results and past experience as well as estimates of reservoir characteristics and flow rates, prices, costs of extraction and processing, capital expenditures and many other factors. Actual quality and characteristics of oil and gas accumulations cannot be known.

To: SofaSpud who wrote (11716)	7/16/1998 10:40:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Velvet Exploration Establishes New Core Area VELVET EXPLORATION ANNOUNCES NEW CORE GAS AREA CALGARY, July 16 /CNW/ - VELVET EXPLORATION LTD. (the ''Company'') is pleased to announce that the Stoney Nakoda First Nation (the ''Nation'') has accepted the Company's proposal for the exploration and development of approximately 25,000 contiguous hectares (61,750 acres) of land (the ''Lands''). The Lands are located in the Alberta foothills approximately 50 kilometres west of Calgary and are on trend with several large, liquid rich, gas fields including Salter and Moose Mountain. Specific details of this proposal, which is subject to a formal permit being entered into between the Company, the Nation and the Federal Government, and the approval of the Vancouver Stock Exchange, will be released upon execution of the permit. The acquisition establishes a significant new core area for the Company in a high impact natural gas prone corridor of the Alberta foothills. Further, the acquisition, which more than doubles the Company's current undeveloped lands, is consistent with its strategy to pursue growth through the acquisition and development of large undeveloped land holdings in close proximity to infrastructure. Velvet Exploration Ltd. is a Canadian energy company engaged in the exploration, development and production of natural gas and crude oil. The Company's common shares are listed on the Vancouver Stock Exchange under the trading symbol ''VLV''.

To: SofaSpud who wrote (11716)	7/16/1998 10:42:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING - SPEC 20 LISTED / Upton Resources Private Placement UPTON ARRANGES EXPLORATION FUNDING CALGARY, July 16 /CNW/ - (URC-TSE) - Upton Resources Inc. announces that Upton has entered into an agreement, subject to regulatory approval, to offer up to 1,000,000 flow-through common shares at a price of $3.15 per common share on a private placement basis. The offering may be expanded by mutual agreement between the agent and the company. Proceeds from the offering will allow Upton to maintain its light oil exploration drilling program in Canada and should include between 8 and 10 new test wells. Each exploration well will be testing for potential reserves of 1 to 5 million barrels per prospect. Dundee Securities Corporation has been engaged to act as exclusive agent in conjunction with this offering. Proceeds of this offering will be used to fund exploration expenditures. Closing of the offering is expected to occur on or about July 31, 1998. The common shares of Upton are listed on the Toronto Stock Exchange under the symbol ''URC''.

To: SofaSpud who wrote (11716)	7/16/1998 10:45:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Para-Tech Energy Director Appointment PARA-TECH ENERGY CORPORATION ANNOUNCEMENT CALGARY, July 16 /CNW/ - Brian R. Herman, Chairman of the Board and Laurie Wickwire, President, are pleased to announce the appointment of Mr. Norman R. Gish to the Board of Directors of Para-Tech Energy Corporation as of June 16, 1998. Mr. Gish brings 17 years of related oil, gas, well services and international experience to Para-Tech. He was previously President and CEO of North Canadian Oils Limited, Managing Director Fracmaster China and is currently Chairman and Director of Alliance Pipeline Ltd. and ICG Propane Inc. Para-Tech Energy Corporation has a very successful downhole production tool called the ''ENERCAT'' which eliminates the deposition of paraffins, asphaltenes and scaling from well bores and downhole equipment. The company is currently developing markets world wide for this exceptional tool.

To: SofaSpud who wrote (11716)	7/16/1998 10:48:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Dundee Petroleum Corp. Drilling Update DUNDEE UPDATES DRILLING ACTIVITIES CALGARY, July 16 /CNW/ - Dundee Petroleum Corp. reports that it has completed its earning obligations under its previously announced Cessford farmin agreement, under which the Company has participated in the drilling and completion of 36 shallow gas wells in southeastern Alberta. Under the farmin arrangement, Dundee has been responsible for approximately 30% of the costs of the wells, which have been drilled and completed for production from the Milk River and Medicine Hat formations. In exchange, Dundee has now earned a 30% working interest in the wells and associated lands, comprising approximately 12,160 gross (3,648 net) acres or 19 gross (5.7 net) sections, subject to a non-convertible gross overriding royalty. Dundee's share of the drilling and completion costs for the program was $865,000. Dundee estimates the initial 36 wells will be placed on production in October of this year. First year average production from these 36 wells is estimated to be 1.1 Mmcf per day net to Dundee. Dundee's current production is approximately 180 BOE per day. Total proved reserves added from the Cessford farmin transaction are estimated to be 4.5 Bcf net to Dundee, which includes a minimum of 39 additional drilling locations on the lands which the Company has earned.

To: SofaSpud who wrote (11716)	7/21/1998 2:40:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Westfort Energy Ltd. Pelahatchie Deep Unit 18-4 Drilling Update WESTFORT ENERGY ANNOUNCES ADDITIONAL GAS SHOWS IN THE SMACKOVER FORMATION JACKSON, MISSISSIPPI, July 20 /CNW/ - Westfort Energy, Ltd. symbol WT on the Toronto Stock Exchange, announced this morning that in drilling the Pelahatchie Deep Unit 18-4 it has now encountered seven mudlog shows in the Smackover Formation. The latest show (show No. 32 in the well) was in a 31-foot zone from 16,901 to 16,932. The Pelahatchie Deep Unit 18-4 has now reached a depth of 16,960 feet as of 9:30 a.m. CST. It is anticipated that the top of the Norphlet Oil/Gas zone will be reached between 17025 - 17050 feet. At approximately 17,000 feet the company plans to come out of the hole and change bits. The company is proceeding cautiously and is presently conditioning the drilling fluids so that they weight 17 pounds per gallon, a weight calculated to exceed and control the expected high pressures of the Norphlet zone thus allowing the company to drill into and through the zone. Unless the process is slowed by some unknown event, the well should reach total depth of 17,350 this week at which time the company will log the well and then set casing through the zone for production from perforations in the Norphlet formation. As previously announced, the company is assured production, having already secured numerous oil and gas zones behind casing to a depth of 15,900 feet. An additional casing string will be run from 15,900 to 17,350 in order to secure the Smackover gas zone and the Norphlet zones. Tbe Johnny Rhodes 7-6 well is being readied for production test. Nabors Drilling Co. is moving the drilling rig from the location today to make room for Westfort's completion rig. It is anticipated that production test equipment should be in place to allow a test on Wednesday.

To: SofaSpud who wrote (11716)	7/25/1998 2:40:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Search Energy Announces Agreement With Petro-Canada CALGARY, July 24 /CNW/ - SEARCH ENERGY CORP. (TSE - ''SGY'') is pleased to announce that it has entered into an agreement to acquire all the shares of 765467 Alberta Ltd., a wholly owned subsidiary of Petro-Canada, in exchange for a minimum of 16.6 million class A common shares of Search and $100,000 cash, subject to certain pre and post closing adjustments. Based on recent trading prices of Search shares the cost of this acquisition will be approximately $12.4 million. The transaction will have an effective date of July 1, 1998 and is scheduled to close before September 30, 1998 subject to approval by Search shareholders and conditions typical to transactions of a similar nature. 765467 Alberta Ltd. has producing properties and undeveloped lands located in Alberta and British Columbia most significantly in the Bezanson area east of Grande Prairie, Alberta and the Klua area located in northeastern British Columbia. The petroleum and natural gas reserves of 765467 Alberta Ltd. were independently evaluated by Sproule Associates Limited, petroleum engineers, as of January 1, 1998 and were estimated at that time to consist of 24.5 Bcf of natural gas and 1,306,000 barrels of crude oil and natural gas liquids on a proven basis. On a proven plus probable basis the reserves were estimated to be 27.1 Bcf of natural gas and 1,664,000 barrels of crude oil and natural gas liquids. Also included in the assets of 765467 Alberta Ltd. is an undeveloped land base of 19,200 net acres with a current value estimated at $1.75 million and a 100% owned and operated natural gas processing facility with a capacity of 20 mmcfd. Search's present proven reserves based on an independent evaluation prepared by McDaniel & Associates Consultants Ltd., petroleum engineers, as of January 1, 1998 and updated internally for reserve additions to date in 1999 are approximately 4,545,000 barrels of oil equivalent. The addition of 765467 Alberta Ltd.'s proven reserves adjusted for production occurring since the evaluation date will represent an increase of 81 % to 9,245,000 barrels of oil equivalent. Search believes that the acquisition of 765467 Alberta Ltd. will provide at least two new focus areas for it, each having significant undeveloped land to fuel future growth by providing many exploration and development opportunities. Search's current daily production of 1,250 barrels of oil and 10 mmcf of natural gas will increase by approximately 450 barrels of oil and 3.5 mmcf of natural gas as a result of the acquisition to a total of 1,700 barrels of oil and 13.5 mmcf of natural gas or 3,050 barrels of oil equivalent per day. Expansion of certain facilities owned by 765467 Alberta Ltd. combined with Search's on going drilling program should see production rise to around 4,000 barrels of oil equivalent per day by year-end 1998. Upon closing this acquisition Search will have approximately 47.6 million shares issued and outstanding with Petro-Canada, the single largest shareholder, owning around 34 percent. Notwithstanding that the shares issued to Petro-Canada will be restricted from trading for one year, Petro-Canada has indicated that its involvement with Search is considered a long-term investment. Mr. R. A. McIntosh, Vice President, Exploration and International for Petro-Canada will be appointed to the Search Board of Directors upon closing. Search is a growth oriented Canadian junior oil and gas company engaged in exploration, acquisition and production of crude oil and natural gas reserves in Alberta, Saskatchewan and Manitoba.

To: SofaSpud who wrote (11716)	7/25/1998 2:44:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Range Petroleum $1.75 Million Private Placement VANCOUVER, July 24 /CNW/ Range Petroleum Corporation RAN - VSE The Board of Directors of Range Petroleum Corporation has approved a Private Placement of one million flow through shares at a price of $1.75 per Share. A significant amount of these proceeds will be dedicated to advance an encouraging 3-D seismic program currently being conducted in southwestern Ontario, where Range holds 100 per cent working interest on approximately 50,000 acres. A finder's fee of 2.5% will be paid to Haywood Securities Inc.