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

To: Herb Duncan who wrote (11866)	7/25/1998 3:13:00 AM
From: Kerm Yerman	Respond to of 15196

CORP. / Loon Energy Comments on Roberts Bay Resources Deal CALGARY, ALBERTA--On June 10, 1998 Loon Energy Inc. (ASE:LEY) announced that it had entered into a letter of intent with five shareholders of Roberts Bay Resources Ltd. (ASE:RBR) to purchase 10,406,512 common shares of Roberts Bay in exchange for 1,892,091 common shares of Loon. In a telephone meeting between the vendors and Loon, Loon was advised that the vendors have no intention of proceeding with the transaction. Loon is considering its legal alternatives. Loon is a junior oil and gas company with approximately 70 bopd of production from a property in the Grand Forks area. Loon owns a 10 percent BPO (5 percent APO) interest in a gaswell at Strachan which was drilled, cased and initially evaluated during the first half of 1998. Additional evaluation of this well will occur during the third quarter. Loon also operates gas exploration prospects at Carvel (33.34 percent) and Warwick (50 percent), both of which will be drilled within the next few months.

To: Herb Duncan who wrote (11866)	7/25/1998 3:19:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / CE Franklin Ltd. Announces Second Quarter Results CE FRANKLIN LTD. TSE SYMBOL: CFT AMEX SYMBOL: CFK JULY 24, 1998 CE Franklin Ltd. Announces Second Quarter Results; (Results are in Canadian Dollars) CALGARY, ALBERTA--CE FRANKLIN LTD. (TSE.CFT, AMEX.CFK) today reported results for the second quarter ended June 30, 1998. Sales for the second quarter were $65.9 million, a decrease of $17.9 million or 21 percent from the record level of 1997. The decrease is due to a return to a more typical spring breakup activity level and a weaker oil price which caused drilling activity in Western Canada to be 29.3 percent lower than the comparable period in 1997. A reduction in sales was partially offset by strategic acquisitions and sales of maintenance products. Gross profit for the second quarter of 1998 was less affected, declining from $11.0 million to $10.3 million or 6 percent from the same quarter in 1997. Gross profit as a percentage of sales increased by 2.5 percent to 15.6 percent due to a shift in product mix. There was no net income per share for the second quarter of 1998 as compared to $0.09 from the second quarter in 1997 and $0.01 in 1996. The decrease is due mainly to reduced gross profit and an investment in current internal growth initiatives; including, implementing new computer hardware and software, creating a new Piping Resources division and opening a new location, which caused an increase in expenses. Sales for the first six months of 1998 were $181.1 million or 3 percent higher than in the first six months of 1997. This is due mainly to an increase in market share from internal growth initiatives and strategic acquisitions offset partially by a 17 percent decrease in drilling activity. Net income for the first six months decreased by $1.1 million to $3.0 million and earnings per share fully diluted were $0.18, a decrease of $0.06 or 25 percent from 1997. "A break-even second quarter is typical of our historical pattern due to the seasonality of the Canadian oilfield," commented, John Gilbank, Chairman and Chief Executive Officer, "and our internal growth and improvement initiatives have been successful in generating gross profit to offset the general market decline. The outlook for the Canadian oilfield activity for the next few months appears to be soft but we are optimistic about 1999 based on strong company performance and an industry which anticipates moderate oil prices and good demand for Canadian natural gas." CE Franklin has created Piping Resources as an independent division with a mandate to serve the needs of major specifiers of industrial pipe, valves and fittings. Beyond traditional oilfield construction work Piping Resources is targeting major capital spending opportunities in industries such as the oilsands (bitumen), heavy oil, refining and petro-chemical as well as non-oilfield related industries such as utilities, waste and water. Piping Resources facilities are located in four strategic locations and stocked with market class inventories of carbon, stainless steel, and chrome alloy pipe, valves and fittings. This division will work extremely close with the field network, which will allow them to serve client needs and increase the overall market shares and profitability with additional new products and services. In June, the Company entered into a business alliance with K & D Industries, of Dartmouth, Nova Scotia, to bring an "integrated supply" solution to the burgeoning energy and industrial business segments in Atlantic Canada. Also, during the second quarter CE Franklin opened a new location in Sarnia, Ontario.