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To: SofaSpud who wrote (11933)	7/29/1998 6:05:00 PM
From: SofaSpud	Read Replies (2) \| Respond to of 15196

FIELD ACTIVITIES / Westfort deep well WESTFORT ENERGY LTD. ANNOUNCES RESULTS ON DRILLING OF PELAHATCHIE DEEP UNIT 18-4 WELL NO. 1 JACKSON, MISSISSIPPI, July 29 /CNW/ - Westfort Energy Ltd., symbol WT on the Toronto Stock Exchange, is pleased to announce that it has completed drilling the Pelahatchie Deep Unit 18-4 No. 1 Well to a total depth of 17,234 feet. Log results indicate 107 feet of oil column in the Norphlet oil/gas reservoir and an additional total of 163 feet of pay in the Smackover gas reservoir. Completion of the Norphlet well has already commenced and test results will be announced at a later date upon construction of production facilities. Johnny Rhodes 7-6 Well progress: Production test facilities are in place and test results will be forthcoming. The Toronto Stock Exchange neither approved nor disapproved of this release. -30- For further information: Grant Young, (604) 687-9887, Jean Williams, (601) 933-0890

To: SofaSpud who wrote (11933)	7/29/1998 6:06:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Gulf Indonesia Q2 GULF INDONESIA RESOURCES LIMITED - FIRST HALF 1998 RESULTS CALGARY, July 29 /CNW/ - << (All dollar amounts in this report are United States dollars) ------------------------------------------------------------------------ Three Months Six Months Ended June 30, Ended June 30, 1998 1997 1998 1997 ---- ---- ---- ---- FINANCIAL (thousands of dollars) Net oil revenue 18,596 31,700 39,714 56,255 Cash generated from operations 9,305 19,153 22,667 34,848 Earnings (loss) for the period (9,893) 4,997 (15,955) 9,141 Capital expenditures and exploration expenses 51,488 72,346 93,754 119,644 PER SHARE (dollars) Cash generated from operations 0.11 0.26 0.26 0.48 Earnings (loss) for the period (0.11) 0.07 (0.18) 0.12 Average number of shares (millions) 87.9 73.3 87.9 73.3 VOLUMES (gross sales) Crude oil (thousands of barrels per day) 19.6 25.6 20.3 21.6 ------------------------------------------------------------------------ >> FIRST HALF 1998 RESULTS Gulf Indonesia Resources Limited notes significant progress on several fronts during the second quarter. The Company maintained timely construction of the Corridor Gas Project scheduled to start-up in September, negotiated two agreements with Pertamina, the Indonesian State Oil Company, announced a natural gas discovery on the Corridor block, drilled 17 wells and maintained a strong balance sheet through quarter-end. ''The Company made significant progress towards its strategic goals in a very active quarter,'' said Bill Fanagan, President and CEO of Gulf Indonesia Resources. ''In light of the economic and political changes that took place in Indonesia during the quarter and the impact on the marketplace, I believe that our actions and progress demonstrate not only that business is on track for us, but that Pertamina is working hard to ensure continued and timely progress for oil and gas activities.'' Results announced today for the first six months include average oil sales volumes of 20,300 barrels per day (b/d), cash generation of $23 million and a loss of $16 million. Oil prices averaged $13.03 per barrel for the first six months of 1998, marking a decline of 34 per cent from the same period in 1997. Oil sales averaged 1,300 b/d lower than the first half of 1997, primarily a result of natural production decline rates from offshore wells. Lower oil prices were the primary cause of lower cash generation and earnings compared to the first six months of 1997. Drilling successes during the second quarter included both exploration and delineation drilling. Delineation on the Corridor block was completed during the second quarter with positive results. Certification of additional reserves from the Sumpal and Dayung fields, the two largest fields on the block, is expected in the third quarter. Additionally, four successful delineation wells were drilled on the Corridor PSC and Corridor TAC areas that will provide new oil volumes to supplement current production from these areas. The Company had a significant discovery on the Corridor block with the Rebonjaro Dalam natural gas discovery well. The proximity of this discovery to the main gathering line will allow for easy tie-in to Corridor expansion plans. At the end of the second quarter, the Corridor Gas Project and facilities were nearly complete, within budget and on schedule. The 54 per cent Gulf Indonesia-owned and operated project will start-up in September. Agreements recently negotiated include the West Natuna Sales Agreement and the Ketapang Production Sharing Contract. The West Natuna Sales Agreement provides for the marketing of natural gas from the West Natuna Area to Sembawang Gas for use in power generation in Singapore. By initialing this agreement, the consortium of West Natuna producers can now proceed with plans to evaluate contractors for construction of a pipeline to transport the gas to Singapore. In the second agreement, Gulf Indonesia was awarded a 100 per cent working interest in the Ketapang PSC, located offshore Java adjacent to another Gulf Indonesia held block. As a result of the impact of lower oil prices on the CompanyŠs cash flow, the drilling program for the remainder of the year has been reduced by approximately $20 million. Drilling will focus on lower risk prospects and adding reserves from delineation drilling of existing and new discoveries, particularly in South Sumatra. Two rigs that just completed delineation work on the Corridor block will move north onto the South Jambi block to drill three delineation wells as a follow-up to 1997 discoveries. Delineation work will result in the first phase of reserve certification for this block by year-end. Currently, no reserves are booked for South Jambi. During the second half of 1998 an additional 25 wells are planned, of which three are exploration, nine delineation and thirteen development. In the second half of the year, Gulf Indonesia will benefit from the start-up of the Corridor Gas Project, which will more than double current production on a barrel of oil equivalent basis, and the Company will seek to finalize additional marketing agreements with two buyers that would enable the expansion and future doubling of gas supplies from the Corridor block. << CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND RETAINED EARNINGS (DEFICIT) (Unaudited) Three months ended Six months ended (thousands of United June 30, June 30, States dollars) 1998 1997 1998 1997 ------------------------------------------------------------------------- EARNINGS (LOSS) Revenues Gross oil revenue $ 22,546 $ 43,468 $ 47,923 $ 77,960 Government take 3,950 11,768 8,209 21,705 ------------------------------------------------------------------------- Net oil revenue 18,596 31,700 39,714 56,255 Other 1,408 815 2,827 970 ------------------------------------------------------------------------- 20,004 32,515 42,541 57,225 ------------------------------------------------------------------------- Expenses Operating 5,844 7,413 11,359 12,707 Petroleum revenue tax 353 493 727 1,054 Exploration 12,521 2,364 21,147 3,321 General and administrative 3,527 734 5,588 1,992 Depreciation, depletion and amortization 9,358 8,383 19,393 16,552 ------------------------------------------------------------------------- 31,603 19,387 58,214 35,626 ------------------------------------------------------------------------- Earnings (loss) before tax (11,599) 13,128 (15,673) 21,599 Income tax expense (recovery) (1,706) 8,131 282 12,458 Earnings (loss) for the period $ (9,893) $ 4,997 $(15,955) $ 9,141 ------------------------------------------------------------------------- ------------------------------------------------------------------------- RETAINED EARNINGS (DEFICIT) Balance, beginning of period $(11,757) $ 46,901 $ (5,695) $ 42,757 Earnings (loss) for the period (9,893) 4,997 (15,955) 9,141 ------------------------------------------------------------------------- Balance, end of period $(21,650) $ 51,898 $(21,650) $ 51,898 ------------------------------------------------------------------------- ------------------------------------------------------------------------- PER SHARE INFORMATION (dollars per share) Cash generated from operations $ 0.11 $ 0.26 $ 0.26 $ 0.48 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings (loss) $ (0.11) $ 0.07 $ (0.18) $ 0.12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended Six months ended (thousands of United June 30, June 30, States dollars) 1998 1997 1998 1997 ------------------------------------------------------------------------- OPERATING ACTIVITIES Earnings (loss) for the period $ (9,893) $ 4,997 $(15,955) $ 9,141 Non-cash items included in earnings (loss): Depreciation, depletion and amortization 9,358 8,383 19,393 16,552 Exploration expense 12,521 2,364 21,147 3,321 Deferred income taxes (2,931) 3,409 (2,418) 5,834 Other 250 - 500 - ------------------------------------------------------------------------- Cash generated from operations 9,305 19,153 22,667 34,848 Changes in non-cash working capital 6,669 (5,214) 6,021 (5,735) ------------------------------------------------------------------------- 15,974 13,939 28,688 29,113 ------------------------------------------------------------------------- INVESTING ACTIVITIES Capital expenditures and exploration expense (51,488) (72,346) (93,754) (119,644) Acquisition of Gulf Resources (Kakap) Ltd. - - - (105,137) Changes in non-cash working capital (1,237) 8,450 (9,743) 32,432 ------------------------------------------------------------------------- (52,725) (63,896) (103,497) (192,349) ------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from issue of long-term debt 23,400 27,400 62,300 37,400 Debt placement costs 305 (452) 236 (7,254) Changes in non-cash working capital 3,341 22,336 2,784 129,846 ------------------------------------------------------------------------- 27,046 49,284 65,320 159,992 ------------------------------------------------------------------------- Decrease in cash (9,705) (673) (9,489) (3,244) Cash at beginning of period 107,447 8,008 107,231 10,579 ------------------------------------------------------------------------- Cash at end of period (1) $ 97,742 $ 7,335 $ 97,742 $ 7,335 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Comprises cash and short-term investments. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, 1998 December 31, 1997 ------------------------------------------------------------------------- (thousands of United States dollars) (Unaudited) ------------------------------------------------------------------------- ASSETS Current Cash and short-term investments $ 97,742 $ 107,231 Accounts receivable 36,128 40,773 Accounts receivable - parent/affiliates - 258 Inventory and other current assets 28,452 25,062 ------------------------------------------------------------------------- 162,322 173,324 Deferred charges 12,746 13,482 Property, plant and equipment 633,194 579,980 ------------------------------------------------------------------------- $ 808,262 $ 766,786 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable $ 43,944 $ 51,163 Accounts payable - parent/affiliates 2,272 - Other current liabilities 8,196 5,700 ------------------------------------------------------------------------- 54,412 56,863 Long-term debt 212,700 150,400 Deferred income taxes 63,523 65,941 ------------------------------------------------------------------------- 330,635 273,204 ------------------------------------------------------------------------- Shareholders' equity Share capital 499,277 499,277 Deficit (21,650) (5,695) ------------------------------------------------------------------------- 477,627 493,582 ------------------------------------------------------------------------- $ 808,262 $ 766,786 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTARY INFORMATION (Unaudited) Three months ended June 30, Six months ended June 30, ------------------------------------------------------------------------- 1998 1997 1998 1997 ------------------------------------------------------------------------- CRUDE OIL VOLUMES SOLD (1) (gross/net) (thousands of barrels per day) Onshore 14.1 / 10.5 13.7 / 10.4 14.2 / 10.6 13.5 / 10.2 Offshore 5.5 / 5.5 11.9 / 8.2 6.1 / 6.1 8.1 / 5.4 ------------------------------------------------------------------------- 19.6 / 16.0 25.6 / 18.6 20.3 / 16.7 21.6 / 15.6 ------------------------------------------------------------------------- (1) ''Gross'' sales reflects the Company's interest prior to the deduction of government take; ''net'' sales is after deduction of government take. CRUDE OIL GROSS AVERAGE PRICES (dollars per barrel) Onshore 12.39 18.17 12.75 19.77 Offshore 13.40 19.16 13.70 20.09 ------------------------------------------------------------------------- Average 12.67 18.63 13.03 19.89 ------------------------------------------------------------------------- NET CRUDE OIL REVENUE (thousands of dollars) Onshore 15,848 22,713 32,885 48,417 Offshore 6,698 20,755 15,038 29,543 ------------------------------------------------------------------------- 22,546 43,468 47,923 77,960 Less: Government take Onshore (3,950) (5,551) (8,209) (11,840) Offshore - (6,217) - (9,865) ------------------------------------------------------------------------- Net oil revenue 18,596 31,700 39,714 56,255 ------------------------------------------------------------------------- This report contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although GRL believes that its expectations are based on reasonable assumptions, these assumptions are subject to a wide range of business risks, and there is no assurance GRL's objectives will be achieved. Shareholder Questions Can be Answered by Contacting the Company's Transfer Agent The Bank of New York 1-800-524-4458 E-Mail Address: Shareowner-svcs@bankofny.com Address Shareholder Inquiries to: Shareholder Relations Department - 11E PO Box 11258 Church Street Station New York, New York, 10286 Answers to many of your shareholder questions and requests for forms are available by visiting The Bank of New York's Website: stock.bankofny.com -30- For further information: Gulf Indonesia Resources Limited, Investor Relations and Public Affairs, (303) 813-3800

To: SofaSpud who wrote (11933)	7/29/1998 7:39:00 PM
From: SofaSpud	Respond to of 15196

PIPELINES / IPL Energy Q2 Results IPL Energy Earnings Growth Continues, Increased Dividend Declared CALGARY, ALBERTA--(July 29, 1998)IPL Energy Inc. today announced that its Board of Directors has declared a dividend of $0.575 per common share, payable September 1, 1998 to shareholders of record August 14, 1998. This represents an increase of $0.03 per common share, or 5.5 percent, from the prior dividend rate. "The dividend increase reflects IPL Energy's strong underlying growth in earnings, resulting from the execution of the strategic direction first outlined early last year," said Brian F. MacNeill, President & Chief Executive Officer. "This continued earnings momentum is particularly notable given the influence of this year's extraordinarily warm winter weather, a good portion of which we expect to mitigate through various actions. Our focus continues to be on delivering superior returns to shareholders through earnings growth and a steadily increasing dividend." IPL Energy also announced earnings of $209.8 million ($2.90 per common share) for the six months ended June 30, 1998. This represents an 11 percent increase when compared with earnings of $188.7 million ($2.79 per common share) for the same period in 1997. Improved results from Energy Transportation and Corporate segments more than offset the impact of warm weather which reduced earnings from the Energy Distribution segment. FINANCIAL The Energy Transportation segment contributed $71.0 million to first half earnings, up from $57.9 million earned during the same period last year. The IPL System improved earnings through further operational and cost efficiencies achieved under incentive tolling as well as additional returns generated from system expansion and other capital programs outside of incentive tolling arrangements. In the United States, Lakehead Pipe Line Partners, L.P. also achieved higher throughput volumes, resulting in increased equity earnings and higher incentive allocations to IPL Energy. Finally, earnings from the Colombia pipeline increased, reflecting the higher investment level in 1998. Earnings from the Energy Distribution segment totalled $141.3 million (1997 - $150.6 million) for the six months ended June 30, 1998. The segment results represent income from The Consumers' Gas Company Ltd., as well as earnings of approximately $22.9 million from the Noverco Inc. investment acquired in mid 1997. First half earnings include the results of Consumers Gas for the period October 1997 through March 1998. The gas utility contribution to IPL Energy was $121.8 million, down $28.8 million from last year, reflecting both the impact of a lower allowed rate of return on equity and warmer weather throughout the heating season. For the first six months of the year, weather, as measured in degree days, was about 11 percent warmer than in 1997 and about 15 percent warmer than normal. Growth in the core franchise area continued with 43,000 new customers being added during the first half of the year, reflecting strong economic conditions and residential fuel conversions. IPL Energy estimates that the 1998 impact of the warmer weather represents a potential reduction in earnings of approximately $40 million when compared to earnings expected under normal weather patterns. Through a variety of cost reduction initiatives, operational efficiencies and other corporate actions across the IPL Energy group of companies, management anticipates that the adverse effect of weather on 1998 earnings should be substantially mitigated with many of the initiatives already reflected in the current six months results. In addition to lower corporate provisions as compared to the prior year, the Corporate segment results include one-time after tax gains of approximately $8 million relating to the sale of a non-strategic real estate property and the recovery of previously expensed assets held in trust under a financing arrangement. For the three months ended June 30, 1998, the Corporation's earnings increased to $147.6 million ($2.04 per share) from $131.7 million ($1.95 per share) recorded during the same period last year. Reductions in earnings from Consumers Gas due to warm weather were more than offset by higher earnings from North American and Colombian pipeline operations, contributions from the investment in Noverco, as well as the impact of the Corporate gains noted above. On June 30, 1998, Noverco exercised a warrant to purchase 1.5 million common shares of IPL Energy. The warrant was issued in August 1997, in connection with the acquisition by IPL Energy of a 32 percent interest in Noverco and the acquisition by Noverco of an 8 percent interest in IPL Energy. Upon settlement scheduled for November 13, 1998, IPL Energy will receive $76.5 million of proceeds while Noverco's common share interest in IPL Energy will increase to approximately 10 percent. PROJECT UPDATE ENERGY TRANSPORTATION LINE 9 FINAL CONSTRUCTION NOTICE RECEIVED IPL Energy's existing 30 inch diameter Line 9 pipeline between Sarnia and Montreal will be reversed to transport crude oil from Montreal, Quebec to refineries located in Oakville, Nanticoke and Sarnia, Ontario. On July 16, refiners supporting the Line 9 Reversal Project issued the Final Construction Notice thereby allowing construction to commence immediately. The ultimate capacity of the 832 km line will be 240,000 barrels per day and the projected in service date for the reversed Line 9 is April 30, 1999. TERRACE EXPANSION RECEIVES NEB APPROVAL The Corporation received approval from the National Energy Board ("NEB") to proceed with Phase I of the Terrace Expansion project on June 9, 1998. Building on existing IPL and Lakehead pipeline systems, Phase I will provide an initial 95,000 barrels per day capacity increase by January 1999, rising to 170,000 barrels by the end of 1999. The estimated investment for Phase I is $610 million in Canada and U.S. $138 million in the United States. Subsequent phases are projected to provide the balance of the Terrace project's incremental capacity, including a heavy crude oil allocation of up to 520,000 barrels per day. "NEB approval represents an important milestone for one of the most significant crude oil pipeline projects in Canadian history," said Mr. MacNeill. "The Terrace Expansion project has received widespread industry support and is a vital link in future Western Canadian heavy and synthetic crude expansion programs. This project builds upon the core strengths of our existing pipeline system and strategically positions IPL Energy for future pipeline expansion opportunities. At the same time, Western Canadian producers can continue with their own expansion plans, confident in the increased access to U.S. Midwest refinery markets that the Terrace Expansion project will provide." WILD ROSE CONSTRUCTION ON SCHEDULE FOR EARLY 1999 COMPLETION TARGET Construction continued on target on the $475 million, wholly owned Wild Rose Pipe Line project with $131.6 million spent as at the reporting date. The pipeline, which is scheduled for completion in the first quarter of 1999, is designed to provide transportation capacity of 570,000 barrels per day from the Athabasca and Cold Lake, Alberta regions, south to the Hardisty hub, where it will access the expanded IPL and Lakehead pipeline systems, further reinforcing the strategic North American market linkages IPL Energy continues to forge. A 30 year shipping agreement with Suncor Energy Inc. will provide a base return on the initial investment in the pipeline, while laying the foundation for enhanced returns as the Corporation markets the additional capacity to other transportation customers. ALLIANCE DECISION ANTICIPATED IN FALL OF 1998 The NEB reserved its decision regarding the Alliance Pipeline project on May 21, 1998 and a decision is expected this Fall. IPL Energy is a founding partner in the Alliance Pipeline project, and holds a 21 percent ownership position in the $3.6 billion natural gas pipeline project. This investment is a significant step forward in the Corporation's strategic plan to build a transcontinental transportation alternative for Western Canadian natural gas. The proposed pipeline will transport natural gas through 1,900 miles of pipeline from Fort Saint John, British Columbia to U.S. Midwest markets, including Chicago. During the quarter, the project secured U.S. $2.6 billion of non-recourse debt financing, providing the financial resources necessary to complete construction of the pipeline, subject to regulatory approval. VECTOR CONTINUES ON SCHEDULE The IPL Energy sponsored Vector Pipeline project, which starts from the terminus of the Northern Border and Alliance Pipelines, also continued on schedule. The project now expects to receive preliminary Federal Energy Regulatory Commission (FERC) approval in the Fall of 1998. The U.S. $471 million pipeline will extend 344 miles from Chicago to Dawn, Ontario where it connects to existing and proposed pipeline systems to provide additional transportation linkages for Western Canadian natural gas producers. MILLENNIUM IN-SERVICE DATE REVISED TO NOVEMBER 1, 2000 During the quarter, the Millennium Pipeline project announced a revised in-service date of November 1, 2000. In-service was originally scheduled for November 1999. The pipeline has requested a Preliminary Determination by FERC on non-environmental aspects of the project by September 30, 1998 with final approval by April 30, 1999. Upon regulatory approval, IPL Energy has an option to acquire a 7.5 percent equity interest in the Millennium Pipeline from the Columbia Gas Transmission Corporation in exchange for a 7.5 percent interest in the Vector Pipeline, further supporting the Corporation's transcontinental gas transmission strategy. ENERGY DISTRIBUTION CORNWALL ELECTRIC ACQUISITION PROCEEDING The acquisition of Cornwall Electric is expected to close on July 31, 1998, having received all necessary approvals from the Ontario Municipal Board in late June. Cornwall Electric represents the first step in the Corporation's expansion into the Ontario municipal electricity distribution market, serving about 25,000 residential and business customers in Cornwall and surrounding areas. The acquisition is the first sale of a municipally-owned electric utility in Ontario to a natural gas distribution company in the private sector, representing a key step in IPL Energy's strategy to take advantage of the trend towards convergence of gas and electricity. IPL Energy Inc. is a leader in energy delivery and services, operating the world's longest crude oil and liquids pipeline through the combined Interprovincial Pipe Line Inc. and Lakehead Pipe Line Partners, L.P. systems, and Canada's largest natural gas distribution company through The Consumers' Gas Company Ltd. which serves 1.4 million residential, commercial and industrial customers in south central and eastern Ontario, Quebec and Upper New York State. IPL Energy's common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "IPL". In the United States, the shares trade on The NASDAQ National Market under "IPPIF". Lakehead's preference units trade on the New York Stock Exchange under "LHP". /T/ -------------------------------------------------------------- IPL ENERGY INC. HIGHLIGHTS 1 -------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (unaudited; Canadian dollars 1998 1997 1998 1997 in millions, except per share amounts) -------------------------------------------------------------- FINANCIAL 2 Earnings Energy Transportation 37.9 28.3 71.0 57.9 Energy Distribution 105.7 114.3 141.3 150.6 Corporate 4.0 (10.9) (2.5) (19.8) -------------------------------------------------------------- Consolidated Earnings 147.6 131.7 209.8 188.7 -------------------------------------------------------------- -------------------------------------------------------------- Operating Revenue Energy Transportation 133.1 125.5 259.7 251.9 Energy Distribution 761.3 859.6 1,262.8 1,353.6 -------------------------------------------------------------- Consolidated Operating Revenue 894.4 985.1 1,522.5 1,605.5 -------------------------------------------------------------- -------------------------------------------------------------- Capital Expenditures 211.4 119.2 402.5 215.6 Cash from Operating Activities 32.8 34.0 83.7 27.1 Dividends 40.5 34.9 80.9 69.7 Per Share Amounts Earnings 2.04 1.95 2.90 2.79 Cash from operating activities 0.46 0.51 1.16 0.40 Dividends 0.545 0.515 1.09 1.03 Weighted Average Shares Outstanding (millions) 72.3 67.6 -------------------------------------------------------------- OPERATING Energy Transportation 3 Deliveries (thousands of barrels per day) 2,188 2,028 2,179 1,997 Barrel miles (billions) 199 183 393 372 Average haul (miles) 999 992 995 1,029 Energy Distribution Gas distribution volumes (billion cubic feet) 163 174 275 284 Number of active customers (thousands) 1,405 1,350 1,405 1,350 Degree day deficiency 4 Actual 1,616 1,919 2,922 3,270 Forecast based on normal weather 2,027 1,968 3,435 3,316 -------------------------------------------------------------- /T/ 1. Highlights of Energy Distribution reflect the results of The Consumers' Gas Company Ltd. and other gas distribution assets on a quarter lag basis of consolidation for the three and six months ended March 31, 1998 and 1997. Gas distribution earnings for the nine months ended June 30, 1998 were $114.7 million (1997 - $158.7 million) and will be included in the September 30, 1998 consolidated IPL Energy results. 2. Due to the seasonal nature of gas distribution operations, the amounts shown for the three and six month periods are not indicative of the results for the full fiscal year. 3. Energy Transportation operating highlights include the statistics of the 16.6 percent owned portion of the mainline system located in the United States. 4. Degree day deficiency is a measure of coldness which is indicative of volumetric requirements of natural gas utilized for heating purposes in all markets. It is calculated by accumulating from October 1 the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area. -30- FOR FURTHER INFORMATION PLEASE CONTACT: IPL Energy Inc. Byron Neiles Media Relations Contact (403) 231-5916 (403) 231-4844 (FAX) byron.neiles@iplenergy.com iplenergy.com or IPL Energy Inc. Al Monaco Investment Community Contact (403) 231-3973 (403) 231-4848 (FAX) (800) 481-2804 Toll Free al.monaco@iplenergy.com

To: SofaSpud who wrote (11933)	8/1/1998 3:17:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Encal Energy Six Months Report ENCAL - SIX MONTHS ENDED JUNE 30, 1998 20% GROWTH CONTINUES CALGARY, July 29 /CNW/ - Three months ended Six months ended June 30 June 30 1998 1997 1998 1997 ------------------------------------------------------------------------- Financial ($ thousands except per share amounts) Petroleum and Natural Gas Sales 38,495 36,329 80,693 82,488 Funds From Operations 16,021 17,814 34,752 43,026 Per Common Share - Basic 0.15 0.17 0.33 0.41 - Fully Diluted 0.15 0.16 0.32 0.39 Net Earnings (Loss) (455) 1,989 620 8,101 Per Common Share - Basic - 0.02 0.01 0.08 - Fully Diluted - 0.02 0.01 0.08 Capital Expenditures 37,242 17,133 91,049 59,111 BC Asset Acquisition - - - 45,426 Long Term Debt 191,856 130,388 191,856 130,388 Weighted Average Outstanding Shares (thousands) - Basic 105,392 104,318 105,165 104,211 - Fully Diluted 110,677 110,275 110,650 110,095 Shares Outstanding (thousands) 105,631 104,395 105,631 104,395 ------------------------------------------------------------------------- Operations Production - Natural Gas (mcf/d) 135,411 123,226 138,058 126,896 - Crude Oil (bbls/d) 9,143 6,156 8,977 6,186 - Natural Gas Liquids (bbls/d) 2,633 2,659 2,685 2,417 - Total (BOE/d) 25,317 21,138 25,468 21,293 Pricing - Natural Gas ($/mcf) 1.78 1.63 1.84 1.93 - Crude Oil ($/bbl) 15.60 23.34 16.70 24.52 - Natural Gas Liquids ($/bbl) 14.77 19.47 15.60 22.84 ------------------------------------------------------------------------- To Our Shareholders Highlights - First half 1998 activity in British Columbia has resulted in the Rigel pools exceeding 3,000 barrels per day and the Redeye gas project reaching 20 million cubic feet per day. - West central Alberta growth, during the first half, was driven by exploitation success at Cherhill and a new pool discovery at O'Chiese. In the second quarter, a pipeline project was initiated at Wilson Creek, which is expected to add 20 to 25 million cubic feet per day of new gas production late in the fourth quarter. - Encal has commenced an impact exploration program on Anticosti Island, Quebec. The four-well program will earn a 50% interest in 2.4 million acres on this Ordovician play. - Daily production reached 27,000 barrels of oil equivalent by late June 1998, consisting of 150 million cubic feet per day of natural gas and 12,000 barrels per day of crude oil and natural gas liquids. Exploration Encal's exploration and development program is focussed in the Company's principal operating districts of northeastern British Columbia and west central Alberta. During the first half of 1998, Encal participated in 91 wells (49.7 net), resulting in 31 oil wells (17.0 net) and 46 gas wells (21.8 net), yielding a success rate of 84.6 percent (78.1 percent net). In west central Alberta, the Company drilled 31 wells during the six months ended June 30, 1998, including two more successful horizontal locations in the Wilson Creek Unit. These two wells were production tested at rates exceeding 16 million cubic feet per day on a combined basis. The continued success of horizontal drilling on this Mississippian gas play has prompted Encal to expand the use of this technology to nearby non-unit lands and to commit to the construction of a new 25 mile raw gas pipeline from the Wilson Creek area to the Rimbey processing plant. During the second quarter, the Company also drilled a significant gas discovery at O'Chiese, Alberta. This well, which is expected to be tied-in and commence production in the fourth quarter, confirms the exploration potential of a new play fairway between Encal's core properties at Ferrier and Wilson Creek. In northeastern British Columbia, Encal drilled 42 wells during the first half of 1998, including twelve more successful locations on the Cecil light oil project at Rigel. The Company now has 41 active producers in the Rigel area, which currently yield a net productive capability exceeding 3,000 barrels per day. At least ten more locations are expected to be drilled and tied in by year-end. At Redeye, the Company's net production on its Halfway-Bluesky gas project reached 20 million cubic feet per day during the second quarter after completion of tie-in and gathering systems following the winter drilling program. In May, Encal announced that it had entered into a farm-in agreement with Shell Canada Resources Ltd. and Corridor Resources Inc. to conduct a three-year exploration program on Anticosti Island, Quebec. The Anticosti Island project is a high-risk, impact exploration play, which if successful, could add substantially to the Company's reserve and production base. The work program calls for the drilling of four wells, plus the acquisition of approximately 500 kilometers of new seismic data. In early July, Encal finished drilling the first well in this program at the Roliff prospect. This well failed to encounter significant hydrocarbons and was abandoned after a brief evaluation program. The second well, at the Jupiter prospect, is scheduled to spud by the end of July. For the last half of 1998 and into 1999, the Company will continue to pursue a risk-balanced drilling program focussed on natural gas and light oil projects. More than seventy percent of the 120 firm prospects in current inventory are directed towards low to medium risk, multi-zone natural gas targets in western Canada. The Company also plans to direct approximately 10% of its annual budget to high impact exploration projects in western and eastern Canada. Acquisition and Disposition Activity Encal's acquisition activities were also focussed in its core areas of west central Alberta and northeastern British Columbia. Year to date acquisitions total $17.0 million. In addition to the first quarter acquisitions at the Wilson Creek Unit and Cherhill in Alberta, and at Weasel in British Columbia, Encal has continued to increase it's ownership in the Oak area of British Columbia, with a $3.0 million acquisition late in the second quarter. The Company has also completed several minor property dispositions and property swaps for sales proceeds of $2.7 million. Production and Marketing For the six months ended June 30, 1998, natural gas production increased to 138.1 million cubic feet per day from 126.9 million cubic feet per day during the same period of 1997. Increases in natural gas production are attributable to successful exploration and development activity at Redeye, Bulrush, Cutbank/Wapiti, Wilson Creek/Innisfail and Cherhill. Oil and NGL production increased 36 percent to 11,662 barrels per day for the six months ended June 30, 1998 compared to 8,603 barrels per day in 1997 as a result of successful exploration and development activity at Rigel, Beatton, Consort/Cadogan, Columbia and Jenner. Crude oil prices decreased 32 percent averaging $16.70 per barrel during the six months ended June 30, 1998 compared to $24.52 during the same period in 1997. Natural gas prices decreased five percent averaging $1.84 per thousand cubic feet during the six months ended June 30, 1998 compared to $1.93 per thousand cubic feet in 1997. Natural gas liquids prices decreased 32 percent averaging $15.60 per barrel during the six months ended June 30, 1998 compared to $22.84 per barrel in 1997. The recovery of natural gas prices in the latter part of the first quarter has been sustained throughout the second quarter. Ongoing concerns regarding the adequacy of Canadian gas supplies to meet new incremental pipeline capacity has created a healthy support level for Canadian gas prices. Encal has capitalized on the current situation by fixing the price on 25 percent of its projected 1998 natural gas sales and 10 percent of its projected 1999 natural gas sales. Oil prices continue to test historical lows, although some relief has been provided by the production cuts pledged by significant OPEC producers. OPEC's pricing tolerance level remains uncertain, however these cuts will hopefully establish a floor price under which the market will not trade. Encal has hedged approximately nine percent of its 1998 crude oil production through financial transactions. Financial Petroleum and natural gas sales for the six months ended June 30, 1998 totaled $80.7 million, down two percent over the $82.5 million reported during the same period in 1997. Royalty rates averaged 18.2 percent during the six months ended June 30, 1998 compared to 18.8 percent during the same period in 1997. Operating costs averaged $4.35 per barrel of oil equivalent during the six months ended June 30, 1998 compared to $4.29 per barrel of oil equivalent during the same period in 1997. General and administrative costs averaged $1.12 per barrel of oil equivalent in 1998 compared to $1.11 in 1997. For the six months ended June 30, 1998, funds from operations were $34.8 million ($0.33 per share) compared to $43.0 million ($0.41 per share) during the same period of the prior year. Earnings were $620,000 ($0.01 per share) compared to $8.1 million ($0.08 per share) in 1997. Total capital expenditures for the six months ended June 30, 1998 were $91.0 million compared to $104.5 million for the same period in 1997. Exploration expenditures during the period inclusive of land, seismic, drilling and completions accounted for $51.9 million with an additional $24.8 million incurred on equipment, gathering systems, facilities and injection fluids. The Company spent $17.0 million on acquisitions of core properties and received $2.7 million from the disposition of non-core properties during the six months ended June 30, 1998. Net long term debt, inclusive of working capital deficit was $209.7 million at June 30, 1998 compared to $153.8 million at December 31, 1997 and $139.9 million at June 30, 1997. The Company currently has credit facilities of $260 million. Year end debt is forecasted to be approximately $200 million. Outlook The weakness in crude oil pricing continues to dampen the financial results of the company, despite production growth of 20% achieved during the past twelve months. For the balance of 1998, Encal will focus on natural gas projects currently in inventory. Continued development of the Rigel oil pools to facilitate waterflooding and enhanced reserve recovery will be the only material crude oil investment during the second half of 1998. We are encouraged by the strength of natural gas pricing currently available and expect the 1998/99 contract year to show dramatic improvement over the current year. Encal, as a substantial gas producer, is in an excellent position to benefit from improving natural gas market fundamentals. Drilling success over the past year has generated several facility and pipeline opportunities for Encal. The most significant project is the construction of a new 25 mile - eight inch pipeline from the Wilson Creek area to the Rimbey gas plant. Production of 20-25 million cubic feet per day equivalent, net to Encal, will be available upon regulatory approval and completion of construction. Sales are expected to commence during the fourth quarter of 1998, in time for the 1999 winter gas market. On May 19, 1998, the British Columbia government announced a new cooperative initiative with the oil and gas industry effective June 1, 1998. The initiative will provide royalty reductions, work on long term agreements with First Nations and create a single window regulatory agency. These changes will improve operating netbacks and exploration-production cycle time. Encal is well positioned to benefit. For the first quarter of 1999, Encal will again focus on natural gas and light oil projects in northeastern British Columbia and west central Alberta. These areas, although competitive, continue to provide superior well capabilities and project scope. Our success in these areas has historically provided our base growth of 20% per year which we expect to achieve again in 1999. On behalf of the Board David D. Johnson President and CEO July 29, 1998 Balance Sheets June 30 December 31 ($ thousands) 1998 1997 ------------------------------------------------------------------------ (unaudited) Assets Current Accounts Receivable 20,080 18,366 Inventory 9,700 5,923 ------------------------------------------------------------------------ 29,780 24,289 Petroleum Property and Equipment 546,280 486,541 Deferred Foreign Exchange Losses 4,604 2,706 ------------------------------------------------------------------------ 580,664 513,536 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Liabilities and Shareholder's Equity Current Accounts Payable 47,652 34,698 ------------------------------------------------------------------------ Bank Debt 118,276 71,959 Senior Notes Payable 73,580 71,455 Site Restoration and Reclamation 8,968 8,233 Deferred Income Taxes 51,396 49,737 ------------------------------------------------------------------------ 252,220 201,384 ------------------------------------------------------------------------ Shareholders' Equity Share Capital 247,227 244,509 Retained Earnings 33,565 32,945 ------------------------------------------------------------------------ 280,792 277,454 ------------------------------------------------------------------------ 580,664 513,536 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Statements of Earnings Six Months Ended June 30 (unaudited, $ thousands except per share amounts) 1998 1997 ------------------------------------------------------------------------ Revenues Petroleum and Natural Gas Sales 80,693 82,488 Royalties 14,722 15,500 ------------------------------------------------------------------------ 65,971 66,988 ------------------------------------------------------------------------ Expenses Production 20,049 16,520 General and Administrative 5,156 4,297 Financing Charges 5,542 2,761 Depletion and Depreciation 32,270 27,450 ------------------------------------------------------------------------ 63,017 51,028 ------------------------------------------------------------------------ Earnings Before Income Taxes 2,954 15,960 ------------------------------------------------------------------------ Income Taxes Deferred 1,659 7,475 Large Corporation Tax 675 384 ------------------------------------------------------------------------ 2,334 7,859 ------------------------------------------------------------------------ Net Earnings 620 8,101 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Earnings per Share Basic 0.01 0.08 Fully Diluted 0.01 0.08 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Statements of Changes in Financial Position Six Months Ended June 30 (unaudited, $ thousands except per share amounts) 1998 1997 ------------------------------------------------------------------------ Operating Activities Net Earnings 620 8,101 Depletion and Depreciation 32,270 27,450 Deferred Income Taxes 1,659 7,475 Amortization of Deferred Foreign Exchange Losses 203 ------------------------------------------------------------------------ Funds from Operations 34,752 43,026 Change in Non-Cash Working Capital (11,076) 1,125 ------------------------------------------------------------------------ 23,676 44,151 ------------------------------------------------------------------------ Financing Activities Bank Debt 46,317 66,342 Senior Notes Payable 24 - Common Shares 2,718 1,301 ------------------------------------------------------------------------ 49,059 67,643 ------------------------------------------------------------------------ Investing Activities Petroleum Property and Equipment (93,704) (116,811) Sales of Petroleum Property and Equipment 2,655 12,274 Site Restoration and Reclamation (225) (664) Change in Non-Cash Working Capital 18,539 (6,593) ------------------------------------------------------------------------ (72,735) (111,794) ------------------------------------------------------------------------ Change in Cash - - ------------------------------------------------------------------------ ------------------------------------------------------------------------ Funds from Operations per Share Basic 0.33 0.41 Fully Diluted 0.32 0.39 ------------------------------------------------------------------------ ------------------------------------------------------------------------

To: SofaSpud who wrote (11933)	8/1/1998 3:23:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

SERVICE SECTOR / Enerflex Systems Ltd. $32 Million Expansion ENERFLEX FUELS FUTURE GROWTH WITH $32-MILLION EXPANSION IN CALGARY CALGARY, July 29 /CNW/ - Enerflex Manufacturing, North America's largest gas compressor packager, broke ground today on a $32-million, 328,000-square-foot production and office facility. The new facility, on a 40-acre site at Peigan Trail and 52nd Street S.E., is designed to meet increasing worldwide demand for gas compression equipment. The current plant, at 4949 76 Avenue S.E., is operating at near-capacity and the division foresees continued growth in Canada and internationally. ''Our new facility means Enerflex Manufacturing will continue to provide our customers with the highest quality product for the best value,'' says Malcolm Cox, president and chief operating officer of Enerflex Systems. ''The increased capacity means that we'll be able to accommodate larger and more complex projects, both domestic and international.'' Phase I of the new building includes approximately 260,000 square feet of production space and 68,000 square feet of office space, twice the size of the current facility. The production space should be completed by February 1999, with the office space ready about a month later. The site is large enough to accommodate a second expansion phase that will allow Enerflex to double its production capacity again in the future. The new facility uses an expanded, multiple-bay assembly concept for handling larger offshore projects, heavy lift overhead cranes to move the units safely and more efficiently, and state-of-the-art paint capabilities. This sophisticated manufacturing technology will significantly increase productivity and capacity for Enerflex. PCL-Maxam, one of the largest general contractors in North America, has been awarded the construction contract. Enerflex worked closely with the Erin Woods Community Association throughout the planning process to ensure that area residents' concerns were addressed. The facility is on the south end of the site, as far from residential homes as possible, and plans include a continuous landscape buffer around the site perimeter. ''This new facility seems a lifetime away from the 200 square feet we started with in Calgary 18 years ago,'' says company chairman and chief executive officer John Aldred. Enerflex Systems Ltd. has grown into a $336-million-a-year business, with close to 900 employees (the majority located in Alberta), manufacturing, servicing and leasing custom-designed and standard compressor packages and gas engine power systems. Enerflex Manufacturing, one of seven divisions of Enerflex Systems Ltd., is based in Calgary and manufactures and installs custom-designed compressor packages throughout the world. Enerflex trades on the Toronto Stock Exchange under the symbol ''EFX.''