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

To: Kerm Yerman who wrote (11894)	7/27/1998 2:02:00 PM
From: SofaSpud	Respond to of 15196

FIELD ACTIVITIES / Carmanah Update JULY 27, 1998 Carmanah Updates Indonesian Activity CALGARY, ALBERTA--In response to continuing inquiries from shareholders and the investment community, Carmanah Resources Ltd. ("CKM" - TSE) is pleased to provide the following information. Drilling is continuing at the MPA-1 location in the Camar Field offshore Java, Indonesia.ÿ A sidetrack to the original wellbore is underway and is expected to reach projected total depth in the next several days.ÿ If warranted by drilling results, MPA-1 will then be completed and placed onstream in early August, after which the Pride Pennsylvania jackup rig will be released to another operator. Immediately upon rig release, Carmanah will be able to re-enter Camar-6 to conduct pressure surveys and production logging operations.ÿ This information will assist Carmanah in determining if remedial activities to enhance well productivity are warranted. Production at Camar-6 has stabilized at a rate of approximately 430 BOPD since being placed onstream in late June. A snubbing unit is scheduled to be on location at CN-3 in the Camar Field in early August.ÿ The completion string in the well will then be pulled and the faulty safety valve that has prevented production from this well will be removed.ÿ Thereafter, production will commence at this location. Production at Camar is currently averaging 1,700 BOPD.ÿ Today, a lifting of approximately 80,000 barrels of crude oil in inventory was initiated by Pertamina, the Indonesian state oil company.ÿ The last lifting of Camar crude was in excess of 100,000 barrels of crude oil in late May 1998 with an invoiced selling price of US$13.93 per barrel. As previously reported, by mid-August Carmanah expects to have three new wells, CN-3, Camar-6 and MPA-1, all onstream. The Company's six-month results and a further production update will be reported to shareholders in late August.ÿ While the accounts are still being finalized, second quarter results are likely to resemble those reported for the first quarter as no new wells were placed onstream at Camar until late June.ÿ Second quarter capital spending on drilling and facilities was financed from cash balances and a portion of the Company's established credit facility. Carmanah also advises that it is in compliance with all terms of its credit facility and is current with its trade creditors.ÿ As production levels improve during the balance of the year, Carmanah should become cash flow positive, even with current low oil prices. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Carmanah Resources Ltd. Mr. R.A. Gusella Chairman & Chief Executive Officer (403) 266-4975 (403) 266-5042ÿ (FAX) carmanah@cadvision.com or Carmanah Resources Ltd. Mr. A.F. Badwi President & Chief Operating Officer (403) 266-4975 (403) 266-5042ÿ (FAX)

To: Kerm Yerman who wrote (11894)	7/29/1998 4:11:00 AM
From: Kerm Yerman	Respond to of 15196

Financial Post / Athabasca Oil Sands Investments Inc. Suspends Payments Low commodity prices, oil sector woes hit royalty trust Athabasca Oil Sands Investments Inc. has become the first royalty trust in the ailing oil sector to cancel income distributions for the second quarter. The trust, managed by Gulf Canada Resources Ltd., blamed the "difficult decision" on continuing oil price weakness, large capital spending obligations for expanding the Syncrude Canada Ltd. oilsands plant in northern Alberta and the unscheduled shutdown of one of two coking units, which will reduce the project's overall production. After yesterday's announcement, the trust units (AOSu/TSE) closed down 85› yesterday at $16.40. They traded as high as $27.45 last fall. "Our view is that we came out on the market as an oil price play," said chief financial officer David Carey. "When oil prices were strong, we were able to make tremendous distributions to unit holders. We could have borrowed to maintain distribution, but it seemed more prudent to conserve our cash for investment to build the long-term value of Syncrude." The trust, with an 11.74% interest, is one of the 10 owners of the Syncrude plant. The Fort McMurray, Alta., operation, Canada's largest single source of crude oil, has budgeted $525 million in capital spending this year as part of a $6-billion expansion over the next decade. The trust received about $20.27 a barrel of oil during the quarter, down from $27.19 last year. It expects distributions of 20› a unit for the year, down from $1.65 last year, assuming oil prices average US$16 a barrel. So far this year, unit holders have received 5› per unit, down from 65›. While other oil trusts have reduced distributions to reflect lower cash flow related to continuing oil price weakness, "it's the first time we see trust distributions cut to zero," said oil and gas analyst Brian Ector, oil and gas analyst with CIBC Wood Gundy Securities Inc. in Calgary. The decision was not unexpected, he said. He had predicted distributions of nil to 5› a unit for the period. "What investors have to take comfort in is there is significant underlying net asset value ... and despite the weak commodity price environment, we expect significant value will be realized over the next few years." One of Canada's first oil trusts, Athabasca was launched by then Gulf Canada chief executive J.P. Bryan in November 1995, when his company bought the Alberta government's interest in the operation. The investment vehicles then became popular with small investors because they provided a regular stream of income at a time of low interest rates, while becoming a major source of industry financing particularly for mature properties. Oil trusts have lost their appeal since as low commodity prices cut into distributions. Observers predict consolidation between oil trusts if commodity price weakness persists.