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

To: SofaSpud who wrote (11899)	7/27/1998 8:39:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Desco Enters Into Agreement With Viewpoint Resources ASE SYMBOL: DR JULY 27, 1998 CALGARY, ALBERTA--Desco Resources Ltd. today announced that it has entered into agreements with Viewpoint Resources Ltd., Marengo Petroleum Corporation and Evermount Resources Ltd. of Calgary under which it has agreed to purchase certain producing oil and natural gas assets in exchange for cash and common shares of Desco. The transactions are expected to qualify as Desco's Major Transaction. The assets are located primarily in western Saskatchewan in the general West Milton and Smiley areas. The combined assets were evaluated by an independent engineering company and have a total proved producing value discounted at 15 percent with constant pricing of $257,000 and a total proved non-producing value discounted at 15 percent with constant pricing of $494,500. The properties currently produce approximately 250 mcf/day of natural gas and 20 bopd; within the next 60 days gas production is estimated to increase by an additional 375-400 mcf/d. Total proved producing plus proven non-producing reserves attributable to the acquired interests are approximately 782 mmcf and 55,700 barrels. The agreements are subject to the fulfilment of several conditions including the receipt of regulatory approval.

To: SofaSpud who wrote (11899)	7/27/1998 8:49:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Carmanah Updates Indonesian Activity TSE SYMBOL: CKM JULY 27, 1998 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. A sidetrack to the original wellbore is underway and is expected to reach projected total depth in the next several days. 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. 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. 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. Thereafter, production will commence at this location. Production at Camar is currently averaging 1,700 BOPD. Today, a lifting of approximately 80,000 barrels of crude oil in inventory was initiated by Pertamina, the Indonesian state oil company. 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. 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. 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. As production levels improve during the balance of the year, Carmanah should become cash flow positive, even with current low oil prices.

To: SofaSpud who wrote (11899)	7/27/1998 8:53:00 PM
From: Herb Duncan	Respond to of 15196

CORP / CORDEX Petroleums Inc. Announcement TSE SYMBOL: CZX.A JULY 27, 1998 DENVER, COLORADO--CORDEX Petroleums Inc. (TSE: CZX.A) announced today that it has mailed proxy materials in preparation for an annual and special meeting of shareholders scheduled for August 24, 1998 (the "Meeting"). At the Meeting, the shareholders will be asked, among other things, to approve the sale of all of substantially all of the property of the company, including the Chilean Fell Block oil and gas concession held by the company, certain assets of CORDEX Petroleums Inc. (USA) and 100 percent of the shares of CORDEX Petroleums Argentina Ltd. to Gener S.A., a Chilean utility and industrial company, for a purchase price of US $21,000,000 (approximately $31 million dollars Canadian funds at current exchange rates) less the costs of continuing to operate the company until the closing date and certain other costs and contingencies, all of which may amount to a total of approximately U.S. $2.5 million dollars. Bankers Trust and Anstalt fur Montanbedarf (the "Bankers Trust Investors") will have a first charge against the net proceeds of the transaction with respect to the repayment of the preferred shares of the company's Chilean subsidiary which will require approximately U.S. $13 million dollars consisting of the U.S. $10 million dollar principal amount of the shares, accrued dividends and the share of profits on the transaction attributable to the preferred shares. CORDEX is continuing to negotiate the terms of the purchase and sales agreement with Gener S.A. and anticipates executing a definitive agreement before the Meeting. CORDEX's oil and gas assets consist of approximately 800,000 net acres in five blocks of exploration, development and marginal producing oil and gas properties in Argentina and Chile, and valuable information and data bases. Under the proposed agreement with Gener S.A., the employees of CORDEX Petroleums Inc. (USA) will become employees of a Gener S.A. subsidiary which will continue to operate CORDEX's oil and gas business as a going concern. Coincident with the sale of its oil and gas exploration and development and production assets, CORDEX will enter into a separate agreement with Gener S.A., revising the terms of their previous agreement, for the development of a marine bunkering and asphalt facility in Puerto Ventanas, Chile through a jointly owned company, Petroleos y Asfaltos CORDEX S.A., (PACSA). The new agreement takes into account the increase in the total costs of the project from approximately U.S. $35 million dollars to approximately U.S. $50 million dollars and provides for CORDEX to take an initial 10 percent interest in PASCA with the right by October 31, 1998 to increase this interest up to 45 percent, in each case paying its proportionate share of project costs. If the company elects not to increase its interest beyond 10 percent initially it will have the option to do so at increasing prices until March 31, 2000 with a corresponding obligation to increase its aggregate interest in PASCA to a minimum of 30 percent. The company is seeking debt financing for the PACSA project which will determine the amount of equity required from CORDEX. Also, the Bankers Trust Investors may elect to invest with CORDEX in PACSA which could result in an investment of up to approximately one-third of CORDEX's interest which, in such event, would reduce CORDEX's interest and its financial requirements accordingly. CORDEX's principal source of funds for its investment in PACSA would be the proceeds of the sale of its oil and gas assets to Gener S.A., the closing of which is expected to take place between September 1 and September 30, 1998. The completion of the sale is conditional upon, among other things, the receipt of the approval of the shareholders of CORDEX and the consent of The Toronto Stock Exchange. The sale of the company's oil and gas production, exploration and development assets will enable CORDEX to increase its interest in the PACSA project. Construction of this facility is now underway and to be completed by mid-1999.

To: SofaSpud who wrote (11899)	7/27/1998 8:58:00 PM
From: Herb Duncan	Read Replies (4) \| Respond to of 15196

FIELD ACTIVITIES / Elk Point Updates Pembina Status and Drilling Activity TSE SYMBOL: ELK JULY 27, 1998 CALGARY, ALBERTA--Elk Point reports that interim Good Production Practice ("GPP") at the Pembina Pekisko C Pool will expire effective July 31, 1998 and will be replaced by a four month special Maximum Rate Limitation ("MRL"). This will reduce Elk Point's net oil production from the pool by approximately 250 barrels per day and net gas production from two horizontal wells by approximately 5.5 million cubic feet per day until reservoir pressure support is established. Upon review of a recent reservoir pressure survey, the Alberta Energy and Utilities Board ("AEUB") has decided that a pressure maintenance program is necessary to optimize ultimate recovery from the Pekisko pool. Upon completion of a reservoir simulation study in August 1998, the Company will apply to the AEUB for approval of a pressure maintenance scheme using existing water injection facilities. Subsequent to the above application, the Company will apply to the AEUB for reinstatement of GPP for the pool. Elk Point is pleased to report recent exploration successes including gas wells at Saddle Hills (50 percent W.I.), Pembina (50 percent W.I.), Ferrier (50 percent W.I.), Barrhead (100 percent W.I.) and Corbett Creek (50 percent W.I.). The Company is equipping a horizontal oil well at Lobstick (46 percent W.I.) and a vertical light oil well at Kisby (25 percent W.I.) and is completing a horizontal oil well at Elcott (100 percent W.I.). Gas exploration drilling is underway in West Central Alberta at Evansburg, Apetowun and Newton and in the Alberta Foothills at Voyageur. Further gas exploration tests are planned in August at Saddle Hills, Spirit River, Corbett, Thunder and Newton. Drilling is also progressing on a high impact prospect in the San Joaquin Basin of California.

To: SofaSpud who wrote (11899)	7/27/1998 9:05:00 PM
From: Herb Duncan	Read Replies (6) \| Respond to of 15196

ENERGY TRUSTS / NCE Diversified Income Trust (NCD.UN) July Distribution 2 Cents ($0.02) Per Unit TSE, ME SYMBOL: NCD.UN JULY 27, 1998 TORONTO, ONTARIO--John Driscoll, President of NCE Resources Group, announced today the distribution for the month of July, 1998, for NCE Diversified Income Trust. NCE Diversified Income Trust NCE Diversified Income Trust is a closed-end trust with the objective of maximizing distributions to unitholders by investing in energy-related royalty and income trusts, and to a lesser extent, other investment trusts. - The distribution for July, 1998, is two cents ($0.02) per unit. - The distribution will be payable on August 10, 1998, to holders of record on July 31, 1998. - Distributions are paid monthly. - Distributions for the last 12 months of the Trust were $0.495 per unit. NCE Diversified Income Trust Trading Information - NCE Diversified trades on The Toronto Stock Exchange and the Montreal Exchange under the symbol NCD.UN. - The price for NCE Diversified on The Toronto Stock Exchange at the close of market on July 24, 1998, was $3.60. - The Net Asset Value Per Unit (NAVPU) as of July 23, 1998, was $4.49. - NCE Diversified has a monthly distribution reinvestment plan. Top 10 holdings As at June 30, 1998, the top ten holdings in the portfolio by net asset value weighting were: 1. Superior Propane Income Fund "IR" 2. Canadian Oil Sands Trust 3. Northland Power Income Fund 4. ARC Energy Trust 5. NAL Oil and Gas Trust 6. Pembina Pipeline Income Fund 7. PrimeWest Energy Trust 8. Enermark Income Fund 9. Pengrowth Energy Trust IR 10. Orion Energy Trust The top ten holdings make up 74.59 percent of the net asset value of long-term securities within the Trust. NCE Resources Group NCE Resources Group was formed in 1984 as an oil and gas investment management organization. It provides a full range of technical, operational, administrative and investor services. NCE investment funds have investor capital under management of $850 million from over 40,000 unitholders and have interests in over 5,000 oil and gas wells. The company employs approximately 130 people in the areas of engineering, land management, marketing, geology, accounting, finance and investor relations. Total oil and gas production ranks NCE among the top 30 oil and gas companies in Canada.

To: SofaSpud who wrote (11899)	7/28/1998 9:25:00 PM
From: Herb Duncan	Read Replies (3) \| Respond to of 15196

FIELD ACTIVITIES / Founders Energy Reports Increased Production Volumes In the 2nd Quarter of 1998 TSE, ASE SYMBOL: FDE JULY 28, 1998 CALGARY, ALBERTA--(FDE - TSE/ASE) Founders Energy Ltd. today reported financial and operating results for the six months ended June 30, 1998. Comparative results for the period are as follows: /T/ Financial (000's except per share data) Three Months Six Months Ended June 30, Ended June 30, --------------------------------------------- Percent Percent 1998 1997 Change 1998 1997 Change Gross revenue $3,676 $2,796 31 $7,314 $5,813 26 Cash flow $1,828 $1,328 38 $3,672 $3,035 21 Per share $ 0.05 $ 0.04 25 $ 0.11 $ 0.12 (8) Net income $ 214 $ 270 (21) $ 648 $ 952 (32) Per share $ 0.01 $ 0.01 - $ 0.02 $ 0.04 (50) Long-term debt $10,275 $5,162 99 $10,275 $5,162 99 Capital expenditures $ 5,352 $3,891 38 $10,747 $6,566 64 Shareholders' equity $18,635 $11,039 69 $18,635 $11,039 69 Weighted average shares Outstanding (000's) 33,486 25,710 30 33,486 25,710 30 Operating Production Crude oil and Ngl's (Bpd) 2,092 1,196 75 2,063 1,165 77 Natural gas (Mcfd) 2,297 1,962 17 2,164 2,029 7 Oil Equivalent (Boed) 2,322 1,392 67 2,280 1,369 66 Average selling price Crude oil and ngl's ($/Bbl) $17.15 $23.44 (27) $17.62 $24.15 (27) Natural gas ($/Mcf) $ 1.97 $ 1.37 44 $ 1.87 $ 1.95 (4) Average selling price ($/Boe) $17.40 $22.07 (21) $17.72 $23.46 (24) Netback ($/Boe) $11.17 $12.64 (12) $11.40 $14.10 (19) /T/ During the second quarter of 1998, Founders participated in drilling two (1.25 net) wells, resulting in two successful oil wells. At Hartaven, Founders operated and participated for a 58 percent interest in a successful Winnipeg Sandstone oil well, which was placed on production in late April 1998 at a rate of 750 (422 net) bpd. Production from this well will be restricted by a production allowable of approximately 475 bpd, commencing in late July 1998. In the Heward area of southeast Saskatchewan, Founders participated for a 67 percent interest in a successful Frobisher horizontal well. The well was completed in early July and has been placed on production at a rate of 150 (100 net) bpd. The success of the Heward well may result in further horizontal drilling in the area later in 1998. Year-to-date, Founders has participated in drilling eight (3.06 net) wells, resulting in four (1.86 net) oil wells, two (0.35 net) gas wells and two (0.85 net) exploratory dry holes for an overall success rate of 75 percent. Crude oil and natural gas liquids production averaged 2,092 bpd for the second quarter of 1998, an increase of 75 percent over 1,196 bpd for the second quarter of 1997. Natural gas production averaged 2.3 mmcfd for same period compared to 2.0 in 1997. For the six months ended June 30, 1998 daily production volumes have averaged 2,280 boed, an increase of 66 percent over 1,369 boed for the same period in 1997. Founders daily average production at June 30, 1998 was 2,600 boed. Gross production revenue for the three months ended June 30, 1998 was $3,675,753 compared to $2,796,033 for the same period in 1997. Year-to-date in 1998, gross revenue has increased by 26 percent to $7,313,889 compared to $5,812,872 for the same period in 1997. The average selling price of crude oil for the second quarter of 1998 was $17.19 per barrel, a decrease of 25 percent from $22.93 per barrel in the second quarter of 1997. Cash flow from operations for the three months ended June 30, 1998 was $1,828,311 ($0.05 per share) compared to $1,327,604 ($0.04 per share) in 1997. Year-to-date, Founders cash flow from operations has increased by 21 percent to $3,672,464 ($0.11 per share) compared to $3,034,507 ($0.12 per share) in 1997. Net income for the three months ended June 30, 1998 was $214,101 ($0.01 per share) compared to $269,975 ($0.01 per share) for the same period in 1997. For the six months ended June 30, 1998 net income was $647,849 ($0.02 per share) compared to $952,112 ($0.04 per share) for the same period in 1997. Capital expenditures for the six months ended June 30, 1998 amounted to $10.8 million. To date in 1998, Founders has spent a total of $4.6 million on drilling and completions and $3.1 million on the acquisition of seismic and undeveloped land within our new core exploration areas in Alberta and British Columbia. These expenditures are consistent with our strategy of achieving geographical and commodity diversification through internally generated high-impact exploration opportunities in central Alberta, northwest Alberta and northeast British Columbia. The Company has acquired 21,367 net acres of undeveloped land to date in 1998, increasing its undeveloped land position to approximately 82,000 net acres. Founders has also tied-up an additional 25,000 net acres of undeveloped land through seismic options and farm-in arrangements within our core areas of activity. Capital expenditures for 1998 also include $2.1 million expended in the second quarter to acquire working interests from several partners in the Hartaven area of southeast Saskatchewan, adding approximately 185 bpd of oil production. In June, Founders commenced an aggressive drilling program which will include up to six high-impact exploration wells targeting liquids-rich natural gas and light oil reserves in the Pouce Coupe area of northwest Alberta and in the Fort St. John area of northeast British Columbia. In the Gilby area of central Alberta, Founders will drill three wells targeting Cretaceous natural gas or light oil reserves and one deep, high-impact Devonian Leduc reef well. At Hartaven in southeast Saskatchewan, Founders will continue with an aggressive exploration and development program drilling at least two more wells targeting Ordovician light oil reserves in the Red River and Winnipeg Sandstone formations. Founders Energy Ltd. is an aggressive Canadian junior oil and gas company that is engaged in exploration, acquisition and production of crude oil and natural gas reserves in Alberta, Saskatchewan and British Columbia.