Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerm Yerman who wrote (11888)	7/29/1998 4:25:00 AM
From: Kerm Yerman	Respond to of 15196

Calgary Herald / Amoco Canada Petroleum Seeks Partners For Well New exploration well on Grand Banks considered The lure of finding more oil on the Grand Banks has Amoco Canada Petroleum Co. Ltd. hunting for some well-heeled partners for a new exploration well in 1999. Amoco's first well in the West Bonne Bay property off the coast of Newfoundland was completed in late 1997, earning it "significant discovery" designation from the Canada-Newfoundland Offshore Petroleum Board last month. Calgary-based Amoco Canada has held an initial meeting with its partners in the original well -- Petro-Canada and Norsk Hydro Canada Oil and Gas Inc. -- to consider financing more work. "We're still evaluating our opportunities to do any further drilling,'' John Percic of Petro-Canada said Monday. "We hope to be in a position to make a decision by the fourth quarter of this year.'' Results from the first well haven't been made public, although Amoco said in 1996 the field could contain about 300 million barrels of oil. The significant discovery designation covers nine sections in the Jeanne d'Arc basin. West Bonne Bay is located 15 kilometres northeast of the Terra Nova oilfield and 40 km south of Hibernia. "During the test phase, we were getting a flow of hydrocarbons, but we feel the size of the reservoir is a little bit smaller than what we were hoping for,'' said Amoco's Gay Robinson. "We've started looking for some investment partners to work with us on the drilling of a second well . . . sometime in 1999.'' Percic said Petro-Canada was satisfied with results from the first well, and estimated the cost of drilling a well in the Grand Banks at $50 million. Amoco's involvement in the East Coast dates back to the 1960s, but the company hasn't had much success in the past, said Ian Doig, who publishes the industry trade magazine Doig's Digest. "The street rumblings were not good and not positive on this well,'' he said. "They must have something there to convince the offshore board to grant them a significant discovery (declaration).'' Under terms of its original exploration permit, Amoco must spend $90 million over five years on the West Bonne Bay property, said John Fitzgerald, vice-chairman of the Canada-Newfoundland Offshore Petroleum Board. A significant discovery declaration indicates the potential for sustained oil production and it could lead to Amoco controlling the property for decades, he added. A total of 155 production and exploration wells have been drilled offshore Newfoundland. More attention is turning towards the Grand Banks following the Hibernia project's success and ongoing work on Terra Nova, which is scheduled to begin production in late 2000. "(West Bonne Bay) is a discovery which is adjacent to a field that's under development -- that has some implications for the longer term,'' Fitzgerald said. "But we are in early days out here."

To: Kerm Yerman who wrote (11888)	7/29/1998 4:35:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

Reuters / Remington Energy Buys Canadian Natural Oil Properties CALGARY, July 28 - Remington Energy Ltd. (REL/TSE) strengthened its grip on a key operating area in northeast British Columbia on Tuesday with a C$127.5 million asset purchase from Canadian Natural Resources Ltd.(CNQ/TSE). Remington picked up production of 3,000 barrels a day of light crude oil and 15 million cubic feet a day of natural gas in the West Stoddart area, and 250 barrels a day and 2.5 million cubic feet a day from a second property at Red Creek, plus 5.5 sections of undeveloped land. ''It's definitely good for Remington. It gives them control over their main property, at West Stoddart, and not only does it increase their production in the short term, it also allows them to bring on production that was shut in, so they get quite a production bump,'' Goepel McDermid Inc. analyst Ken Faircloth said. Remington had been in discussions with Canadian Natural to blend the two Calgary-based companies' operations at West Stoddart, and had shut in 3,000 barrels a day of oil production until the issue was resolved. In addition to the cash, Canadian Natural receives Remington's Buick Creek property, valued at C$2.5 million, which is currently producing 1.1 million cubic feet a day of natural gas. With the purchase, Remington's total production will increase by more than 27 percent, or 4,500 barrels of oil equivalent a day to 21,000 barrels of oil equivalent a day by August 15, the company said. The deal will be funded by debt in the short term, and then with bridge financing until the stock market strengthens, at which time Remington may look at an equity issue, vice-president and Chief Operating Officer Larry Petropoulos said. ''The equity's really not on the table today,'' Petrolpoulos said. ''We want to wait for the commodities to turn around a little bit -- at least six months before we'd consider an equity issue.'' Remington shares were down C$0.35 to C$13.50 in light trade Tuesday on the Toronto Stock Exchange, while Canadian Natural's stock dropped C$0.50 to C$23.75 in moderate volumes.