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

To: Herb Duncan who wrote (11929)	7/29/1998 12:08:00 PM
From: SofaSpud	Read Replies (5) \| Respond to of 15196

FIELD ACTIVITIES / Gentry sell Ivory Coast holding GENTRY RESOURCES LTD. CALGARY, July 29 /CNW/ - Gentry Resources Ltd. (''Gentry'') has entered into a Letter Agreement with a senior Canadian oil and gas producer whereby Gentry has agreed to the conditional sale of a 15% working interest in the two deep water offshore exploration blocks, CI-101 and CI-103, in C“te d'Ivoire. The sale would be effective May 1, 1998 and requires the Government of C“te d'Ivoire approval to close. Proceeds of (CDN) $2,500,000 from the sale will be applied to the existing bank debt, significantly strengthening the Company's Balance Sheet. Gentry will be concentrating its C“te d'Ivoire efforts on its original shallow offshore concession, Block CI-102. Gentry maintains an 11% interest in this Block which encompasses 861 km(2). Gentry and its partners Ranger Oil, Energy Africa and Gulf Canada are finalizing interpretation of a 1015 km 2-D survey shot in March of this year. This survey was designed to further delineate two lead prospects that had been identified from the reprocessing of existing seismic. Gentry and its partners will be meeting on July 31, 1998 to discuss technical aspects of their interpretations and to begin preliminary discussions on exploration programs for the second phase of the Production Sharing Agreement (''PSA''). The CI-102 PSA calls for a well to be drilled within the first 12 months of the commencement of Phase 2. -30- For further information: Hugh Ross, President & CEO, (403) 264-6161, Bob Vukovich, Corporate Relations, (888) 876-7197, Website: gentryresources.com, Email: gentry@gentryresources.com

To: Herb Duncan who wrote (11929)	7/29/1998 12:09:00 PM
From: SofaSpud	Respond to of 15196

DIVIDEND / Shell SHELL CANADA DECLARES DIVIDEND CALGARY, July 29 /CNW/ - The Directors of Shell Canada Limited today declared a quarterly dividend of eighteen cents (18 cents). The dividend will be payable September 15, 1998 to shareholders of record August 14, 1998. Dividends payable to shareholders with registered addresses in the United States will be converted into U.S. funds at the rate quoted for U.S. funds by the Bank of Canada at noon on the record date. Visit Shell's Internet web site: www.shell.ca -30- For further information: John Armstrong, Manager, Investor Relations, (403) 691-2175

To: Herb Duncan who wrote (11929)	7/29/1998 12:13:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Shell Canada Q2 Results SHELL CANADA ANNOUNCES IMPROVED SECOND QUARTER EARNINGS CALGARY, July 29 /CNW/ - Shell Canada Limited announced today second quarter earnings of $126 million or 43 cents per Class ''A'' Common Share compared to earnings of $111 million or 33 cents per share for the second quarter of 1997. Second quarter earnings include a gain related to the previously announced sale of the Shell Centre office building in Calgary. Earnings for the first half of 1998 were $241 million or 83 cents per share compared to $263 million or 78 cents per share for the same period in 1997. The impact of depressed commodity prices within Resources more than offset record Oil Products results and the gain from the sale of Shell Centre. Cash flow for the first six months of 1998, before movements in working capital, was $381 million. This compares to $431 million for the same period in 1997. Capital and exploration expenditures were $329 million in the first half of 1998, up from $238 million in the first half of 1997. This increase results primarily from ongoing construction of the Sable offshore natural gas project. ''We are pleased that we have been able to sustain our earnings and investment program during a period when the prices of many of our commodity products declined,'' said C.W. Wilson, President and Chief Executive Officer, Shell Canada Limited. SHELL CANADA LIMITED SEGMENTED INFORMATION Resources Resources earnings in the second quarter were $33 million compared to $47 million for the same period in 1997. The main reason for the earnings decline continues to be low pricing for most commodities. Volume declines were due to asset divestment, the planned maintenance turnaround at the Caroline gas plant and forest fires, which briefly shut in crude oil production at Swan Hills. The earnings impact of lower volumes due to asset divestment was largely offset by the associated reduction in operating expenses. Development of the Sable offshore project continued on schedule with expenditures of $99 million to the end of the first half. Production from Sable is expected to begin in late 1999 or early 2000. Resources earnings for the first six months of 1998 were $91 million compared to $150 million in 1997. Oil Products Oil Products earnings in the second quarter were $65 million compared to $72 million for the same period in 1997. Continuing strong demand for petroleum products partially offset the increased expense related to the planned maintenance turnaround at Shell's Scotford and Sarnia refineries. Earnings for the first half 1998 were $135 million, which exceeded record earnings of $134 million for the same period last year. Oil Sands Commissioning of the bitumen extraction pilot plant on Lease 13 in northern Alberta started in the second quarter. The pilot plant, which will test the bitumen extraction technology for Shell's proposed 150,000 barrels per day Athabasca oil sands project, is expected to be fully operational in the third quarter. Corporate The Corporate segment had earnings of $15 million for the first six months of 1998 compared to expenses of $21 million during the same period in 1997. During the second quarter, the Company sold the Shell Centre office building in Calgary and entered into a separate leasing arrangement for its office space needs within the building. The sale resulted in an after-tax gain, of which $32 million was recognized in the second quarter. Also during the second quarter, the Company was able to reduce its tax expense as a result of the acquisition of business losses from a related company. This reduction will continue to the end of 1998 and is expected to offset Corporate expenses for the period. << Earnings Cash flow Capital Expenditure ($ millions) ($ millions) ($ millions) ---------------------------------------------------------------------- Q2 97 111 209 124 Q3 167 282 129 Q4 93 227 153 Q1 98 115 195 183 Q2 126 186 146 SHELL CANADA LIMITED Financial Highlights ($ millions, except as noted) (unaudited) Second Quarter First Half 1998 1997 1998 1997 ------------------------------------------------------------------------ Earnings 126 111 241 263 Revenues 1 091 1 293 2 227 2 647 Cash flow from operations 186 209 381 431 Return on average common shareholders' equity (%) - - 15.7 13.2 Return on average capital employed (%) - - 14.3 12.4 Per Class ''A'' Common Share (dollars) Earnings 0.43 0.33 0.83 0.78 Cash flow 0.64 0.62 1.31 1.28 Dividends paid 0.18 0.15 0.36 0.30 Results by Segment Earnings Resources 33 47 91 150 Oil Products 65 72 135 134 Corporate 28 (8) 15 (21) ------------------------------------------------------------------------ Total 126 111 241 263 ------------------------------------------------------------------------ Revenues Resources 169 233 355 505 Oil Products 952 1 109 1 934 2 257 Corporate 6 14 16 22 Inter-segment sales (36) (63) (78) (137) ------------------------------------------------------------------------ Total 1 091 1 293 2 227 2 647 ------------------------------------------------------------------------ Cash flow from operations Resources 87 117 183 258 Oil Products 91 94 194 183 Corporate 8 (2) 4 (10) ------------------------------------------------------------------------ Total 186 209 381 431 ------------------------------------------------------------------------ Capital and exploration expenditures Resources 101 81 202 181 Oil Sands 14 4 26 4 Oil Products 31 38 44 52 Corporate - 1 57 1 ------------------------------------------------------------------------ Total 146 124 329 238 ------------------------------------------------------------------------ Return on Average Capital Employed (ROACE): capital employed is a total of equity and long-term debt including the current portion of long-term debt. ROACE is earnings plus after-tax interest expense on long-term debt divided by the average of opening and closing capital employed. Certain amounts previously reported have been reclassified to conform with the current year's presentation. SHELL CANADA LIMITED Operating Highlights (unaudited) Second Quarter First Half 1998 1997 1998 1997 ------------------------------------------------------------------------ Production Natural gas - gross (mmcf/d) 580 626 608 649 Crude oil and bitumen - gross (bbls/d) 22 400 27 400 22 300 27 600 Condensate - gross (bbls/d) 22 200 22 200 24 500 23 700 Ethane, propane and butane - gross (bbls/d) 27 700 29 600 30 400 31 200 Sulphur - gross (tons/d) 6 300 6 200 6 600 6 400 Crude oil processed by Shell refineries (m(3)/d) 37 600 39 300 40 500 39 600 Gas and Sulphur Sales Natural gas sales from own production - gross (mmcf/d) 572 600 603 630 Sulphur sales from own production - gross (tons/d) 7 100 6 700 6 800 6 700 Oil Products Sales Gasolines (m(3)/d) 20 800 19 700 20 100 19 200 Middle distillates (m(3)/d) 16 100 15 800 16 800 16 200 Other products (m(3)/d) 6 400 7 300 6 500 6 700 --------------------------------------- 43 300 42 800 43 400 42 100 Prices Natural gas average plant gate netback price ($/mcf) 1.84 1.75 1.67 2.09 Crude oil average field gate price ($/bbl) 18.30 24.40 19.92 26.42 Condensate average field gate price ($/bbl) 18.24 25.15 20.32 27.29 Ethane, propane and butane average field gate price ($/bbl) 6.70 9.20 7.49 11.91 Natural Gas Crude Oil Condensate Avg. Price Avg. Price Avg. Price (Plant Gate Netback) (Field Gate) (Field Gate) ($/mcf) ($/bbl) ($/bbl) ---------------------------------------------------------------------- 97 Q2 1.75 24.40 25.15 97 Q3 1.47 24.55 25.46 97 Q4 1.81 25.77 27.06 98 Q1 1.51 21.45 22.21 98 Q2 1.84 18.30 18.24 ---------------------------------------------------------------------- SHELL CANADA LIMITED Consolidated Statement of Earnings ($ millions, except as noted) (unaudited) Second Quarter First Half 1998 1997 1998 1997 ------------------------------------------------------------------------ Revenues Sales and other operating revenues 1 079 1 276 2 200 2 617 Dividends, interest and other income 12 17 27 30 ------------------------------------------------------------------------ 1 091 1 293 2 227 2 647 ------------------------------------------------------------------------ Expenses Purchased crude oil, petroleum products and other merchandise 577 707 1 186 1 479 Operating, selling and general 276 277 523 524 Exploration 9 13 19 21 Depreciation, depletion, amortization and retirements 24 85 76 130 Interest on long-term debt 25 20 49 39 ------------------------------------------------------------------------ 911 1 102 1 853 2 193 ------------------------------------------------------------------------ Earnings Earnings before income taxes 180 191 374 454 Income taxes 54 80 133 191 ------------------------------------------------------------------------ Earnings 126 111 241 263 ------------------------------------------------------------------------ Earnings per Class ''A'' Common Share (dollars) 0.43 0.33 0.83 0.78 Common Shares outstanding 290 335 290 336 (millions - monthly weighted average) ------------------------------------------------------------------------ Certain amounts previously reported have been reclassified to conform with the current year's presentation. SHELL CANADA LIMITED Consolidated Statement of Cash Flows ($ millions) (unaudited) First Half 1998 1997 ------------------------------------------------------------------------ Cash from Operating Activities Cash flow from operations (1) 381 431 Movement in working capital and other related to operating activities (421) (74) ------------------------------------------------------------------------ (40) 357 ------------------------------------------------------------------------ Cash Invested Capital and exploration expenditures (329) (238) Proceeds on disposal of properties, plant and equipment 244 100 Investments, long-term receivables and other 45 (5) ------------------------------------------------------------------------ (40) (143) ------------------------------------------------------------------------ Cash from Financing Activities Common Shares buy-back - (976) Proceeds from exercise of Common Share stock options - 5 Dividends paid (104) (101) Long-term debt repayments and other (6) (6) ------------------------------------------------------------------------ (110) (1 078) ------------------------------------------------------------------------ (Decrease) in Cash (190) (864) ------------------------------------------------------------------------ Cash at beginning of year 619 1 190 Cash at June 30 (2) 429 326 ------------------------------------------------------------------------ ------------------------------------------------------------------------ 1. Cash flow from operations comprises earnings before exploration expenses adjusted for deferred income taxes, depreciation, depletion, amortization, retirements and other items not affecting cash. 2. Cash comprises cash and highly liquid short-term investments less short-term borrowings. SHELL CANADA LIMITED Consolidated Statement of Financial Position ($ millions) (unaudited) June 30, 1998 Dec. 31, 1997 ------------------------------------------------------------------------ Assets Current assets Cash and short-term investments 429 619 Accounts receivable 599 717 Inventories 581 589 Prepaid expenses 120 114 ------------------------------------------------------------------------ 1 729 2 039 Investments, long-term receivables and other 170 214 Properties, plant and equipment 3 709 3 713 ------------------------------------------------------------------------ 5 608 5 966 ------------------------------------------------------------------------ Liabilities Current liabilities Accounts payable and accrued liabilities 564 705 Income and other taxes payable (93) 304 Current portion of site restoration and other long-term obligations 28 28 Current portion of long-term debt 368 1 ------------------------------------------------------------------------ 867 1 038 Site restoration and other long-term obligations 182 189 Long-term debt 389 740 Deferred income taxes 833 799 ------------------------------------------------------------------------ 2 271 2 766 ------------------------------------------------------------------------ Shareholders' Investment Capital stock 100 4% Preference Shares 1 1 290 158 740 Class ''A'' Common Shares (1997 - 290 127 940) 469 469 Retained earnings 2 867 2 730 ------------------------------------------------------------------------ Shareholders' Investment 3 337 3 200 ------------------------------------------------------------------------ 5 608 5 966 ------------------------------------------------------------------------ ------------------------------------------------------------------------ >> -30- For further information: Investor Inquiries: Mr. John Armstrong, Investor Relations, (403) 691-2175; Media Inquiries: Ms. Jan Rowley, Public Affairs, (403) 691-3899 or visit Shell's Internet web site: www.shell.com