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

To: Kerm Yerman who wrote (11845)	7/22/1998 7:35:00 AM
From: Kerm Yerman	Read Replies (6) \| Respond to of 15196

FIELD ACTIVITIES / Hawk Oil Company Strikes Strategic Alliance HAWK OIL INC. - 65,000 ACRE STRATEGIC ALLIANCE FOR GAS EXPLORATION - EAST CENTRAL ALBERTA Date: 7/21/98 5:17:28PM Stock Symbol: HWK.B Hawk Oil Inc. is pleased to announce that it has negotiated a strategic alliance under two separate agreements with PanCanadian Petroleum Limited and AltaGas. The first agreement, with PanCanadian (the "Exploration and Development Agreement"), grants Hawk the right to explore and farmin, for gas rights only from surface to basement, on a block of land comprising over 65,000 undeveloped acres (in excess of 100 sections). These fee simple lands are highly gas prone and located in east central Alberta. The Company also has the right to earn additional acreage from PanCanadian where only partial gas rights are available. The Exploration and Development Agreement also establishes an 800,000 acre (1260 sections) Area of Mutual Interest. The second agreement, with AltaGas (the "Tie In and Processing Agreement"), gives Hawk access to AltaGas' facilities within the Area of Mutual Interest. These agreements offer Hawk very favorable exploration and processing terms. The lands are located in close proximity to prolific, multi-zone gas wells and an extensive and under utilized gas infrastructure system. Under the terms of the Exploration and Development Agreement Hawk will evaluate and re-work approximately 1100 km. of PanCanadian seismic data prior to September 1, 1998 and then may elect to drill at least five gas wells on or before January 31, 1999. The agreement also includes two additional option periods between January 31, 1999 and December 31, 2000 whereby Hawk can earn additional lands through drilling. The Company will be drilling its wells at 100% working interest. This land base is ideally suited for Hawk's growth strategy as it offers prospects with multi-zone potential. Offset wells are producing gas from the Viking, Colony, McLaren, Sparky, Glauconite, Basal Quartz, Camrose and Nisku formations. These drilling prospects can be readily identified with modern seismic techniques, can be drilled and operated in a low cost structure and can be quickly tied into the existing infrastructure. The land block is being actively explored as offsetting competitors have licensed 26 wells in the last year alone. Under the Tie In and Processing Agreement Hawk receives firm gathering and processing service for gas production from wells within the Area of Mutual Interest at a very reasonable fixed fee. This arrangement enables Hawk to dedicate the majority of its 1998 capital budget on drilling. Hawk has recently formed a second core gas area in the Cardiff region in west central Alberta where the Company has quietly been accumulating a land position. Hawk now controls approximately 2500 acres in this active gas prone area and has finished shooting and analyzing an extensive seismic program. The Company will be drilling between two and four high working interest wells before year-end. Hawk further announces that it has extended the expiry date on its listed Class A Share Purchase Warrants to December 18, 1998. The Class A Share Purchase Warrants are listed and posted for trading on The Alberta Stock Exchange under the symbol "HWK.WT.A", and were to expire on September 18, 1998. Hawk Oil Inc. is a Calgary based oil and gas exploration company.

To: Kerm Yerman who wrote (11845)	7/24/1998 4:41:00 AM
From: Kerm Yerman	Respond to of 15196

Financial Post / Alberta Energy Boosts Earnings In Second Quarter The Financial Post July 24, 1998 Alberta Energy Co. increased second-quarter earnings, excluding a one-time gain from last year's results, despite a 28% drop in the price of oil, because of higher crude and natural gas sales. AEC shares (AEC/TSE) closed yesterday at $35.25, down $1.15. The stock touched a 52-week high of $36.95 on Wednesday. Without the unusual item, profit in the quarter ended June 30 rose to $5.3 million (5› a share) from $2.5 million (2›) in the same period a year ago. The firm's numbers for 1998 fade in comparison when the impact of last year's $178-million dilution gain from spinning out a portion of a pipeline partnership is included. With the gain, 1997 second-quarter earnings were $180.5 million ($1.61 per share). Cash flow in the quarter for the Calgary-based petroleum company rose almost 7% this year to $99.9 million (88›), while net revenue climbed by the same amount to $397.7 million. Gas sales averaged 591 million cubic feet a day in the second quarter, up more than 15% from a year ago. Volumes are targeted to increase to 600 mmcf/d in the current quarter and to hit 800 mmcf/d in the final three months of the year. Lower oil and gas prices dragged down AEC's first-half numbers. Profit dropped to $7.5 million (7›) from $222.4 million ($1.99) last year.