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

To: Herb Duncan who wrote (11727)	7/14/1998 8:38:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Reserve Royalty Corporation Announces New Transaction CALGARY, ALBERTA--Reserve Royalty Corporation (TSE:ROI) is pleased to announce that it has entered into an Agreement to swap all of the working interests in oil producing and undeveloped lands in the United Kingdom to AltaQuest Energy Corporation (UK) Limited. Consideration for the transaction was $2,000,000.00 plus an 8 percent non-convertible gross overriding royalty on the 15 percent working interest Lands disposed. The effective date of the deal was June 1, 1998 and closing took place July 7, 1998. The first pool discovered on the land, Fiskerton, is currently producing at a restricted rate of 300 barrels per day until a pipeline connection is constructed. A second well into the pool has been drilled and cased and a third well has been spudded. It is anticipated that both additional drilling and pipeline construction will follow in the late summer. The exit 1998 production rate for the project will be in the order of 1,300 barrels per day. Peak pool performance is not expected until 1999. Further exploration of the block is also planned for later this year. Reserve Royalty Corporation views the onshore opportunities for oil and gas exploration and production in the UK to be significant and in the very early stages of development. The area is dominated by both junior and intermediate Canadian Oil & Gas companies and as such believes there will be opportunities for Reserve to provide financial services to support the growth of production in this exciting new area. Reserve Royalty Corporation is an innovative financial company which creates gross overriding royalties in the oil & gas industry through off balance sheet financing for industry partners and by the re-deployment of oil and gas assets acquired by the company in corporate transactions.

To: Herb Duncan who wrote (11727)	7/14/1998 8:44:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Cotton Valley Resources To Acquire $7 Million Of West Texas Oil Properties DALLAS, TEXAS--Cotton Valley Resources Corporation announced today that it has entered into an agreement to acquire a Permian Basin private oil and gas company currently operating 180 oil and gas wells in four counties of West Texas and certain other unrelated properties for a total cash price of $7 million. Using reports prepared by outside petroleum engineers and prices of $13.50/bbl. for 1998 and $15.50/bbl. for 1999, the Company estimates that the effect on the 11 months remaining in fiscal 1999, starting in August, 1998, will be sales of $3.8 million, income from operations of $2.7 million and net income after interest, depletion and depreciation of $1.0 million. If oil prices average $18.00/bbl. over the next fifteen years, the properties are expected to generate, during that period, $36.5 million of revenue and $22.6 million of net operating income. The properties are currently producing 450 barrels of oil per day which is expected to increase to a one-year average of 880 barrels of oil per day (and 525 Mcf of gas per day) as a $2.5 million infill drilling and reworking program is implemented. The independent engineers have estimated the property to contain net proved reserves of 2.4 million barrels of oil and 1.5 billion cubic feet of gas. Of these reserves, approximately 53 percent is proved producing, 17 percent is production behind pipe and 30 percent is proved undeveloped. Cotton Valley engineers have further estimated that an additional 2 million barrels of oil and 2 billion cubic feet of gas will become classified proved within the next 12 months as the planned redevelopment program is implemented. The property contains almost 7,000 acres of producing leases in the San Andres formation which are prospective candidates for a waterflood project and according to Cotton Valley engineers could contain probable reserves of more than 4 million barrels of oil based upon a percentage of ultimate primary recovery. "This acquisition is scheduled to close in early August," said Gene Soltero, Chairman of the Board and Chief Executive Officer. In other property acquisition moves, Cotton Valley also announced that it elected not to exercise the option it held with Phillips Petroleum Company to acquire Phillips interest in the East Binger Field due to a reduction in value as a result of lower oil prices. Cotton Valley further announced it has entered into an option expiring in September 1998 to purchase $1.5 million of producing and undeveloped oil properties in the North Yellow Creek and East Yellow Creek Fields of Wayne and Clarke Counties, Mississippi. Details will be announced as the evaluation progresses. The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward looking statements are reasonable, it can give no assurance that the expectations of any of its forward looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, general economic risks and uncertainties. Cotton Valley Resources Corporation acquires and develops oil and gas properties using new technologies and its own service companies. There are approximately 17 million common shares outstanding.