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

To: Kerm Yerman who wrote (11936)	7/30/1998 8:19:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

EARNINGS / Tri Link Ressources Three Months Report Ending June 30 Date: 7/29/98 Stock Symbol: TLR The financial results for Tri Link's first fiscal quarter ended June 30, 1998, obviously reflect the low crude price environment and a 33 percent drop in price on the Company's blend of crude over the same period last year. With the Company's production 80 percent weighted to light and high quality medium crude, the good news is that field netbacks were $8.75 per barrel. These relatively strong netbacks are reflective of the Company's long standing policy, over many years, to stick to high quality crude production and exploration. The Company can weather the current low oil price cycle due to the netbacks and our long life reserves. Earnings showed negative for only the second time in Tri Link's history since going public in 1990. The loss was almost exclusively related to the price of oil. On a per barrel basis, royalties declined, operating costs were comparable to the prior year and general and administrative costs were 41 percent higher, at $1.55. The increased general and administrative costs were reflective of a 15 percent increase in staff since January, as adequate staff levels are essential to our three year plan to double production. These costs will decline by year end, on a per barrel basis, as production builds. During the first fiscal quarter, capital was directed to high quality development drilling In the Hazelwood Tilston pools, as well as deeper Red River drilling. Two more Red River oil discoveries were made at Hazelwood for a total of four since January. BUSINESS PLAN The three year objective for Tri Link is to double production and the business plan for this fiscal year ended March 31, 1999, will unfold in two stages: Stage I The injection of $90 million in new capital as a result of a $56 million equity issue in May and a $34 million sale of production to be completed in the second quarter. Stage II The sale of 1,500 equivalent barrels per day of production will be replaced, through drilling, during the third quarter. Further, the Company's drilling program this year will continue to generate light gravity oil production growth and is expected to generate good fourth quarter exit rates. Tri Link has budgeted $85 million of capital expenditures for the year to be funded by cash flow, sale of equity and production sale proceeds. The primary focus of the budget will be on drilling, approximately 25 deep Red River wells in the Hazelwood area and infill development proximal to facilities on the shallower Tilston formation in Hazelwood. TRI LINK RESOURCES LTD. FINANCIAL AND OPERATING SUMMARY Three Months Ended June 30 % 1998 1997 +/- ---- ---- ---- Financial --------- Revenue, net of royalties ($000) 17,810 21,050 -15 Cash flow from operations ($000) 7,040 12,397 -43 Earnings (loss) ($000) (710) 2,937 Cash flow from operations per share - basic 0.30 0.59 -49 Cash flow from operations per share - fully diluted ($) 0.29 0.56 -48 Earnings (loss) per share - basic ($) (0.03) 0.14 Earnings (loss) per share - fully diluted ($) (0.03) 0.13 Capital expenditures ($000) 24,437 19,997 +22 Long term debt ($000) 117,500 85,540 +37 Average common shares (000) 23,284 20,991 +11 Average production volumes -------------------------- Oil (bbl/d) 11,575 10,317 +12 Gas (mcf/d) 31,213 33,944 -8 Total (boe/d) 14,696 13,711 +7 Average sales prices -------------------- Oil ($/bbl) 15.61 23.33 -33 Gas ($/mcf) 1.77 1.38 +28 Per barrel oil equivalent ------------------------- Selling price, including hedging 16.06 20.97 -23 Royalties 2.74 4.10 -33 Operating expense 4.57 4.53 +1 Field netback 8.75 12.34 -29 Administrative expense 1.55 1.10 +41 Interest expense 1.39 0.65 +114 Capital taxes 0.54 0.65 -17 Corporate netback 5.27 9.94 -47

To: Kerm Yerman who wrote (11936)	7/30/1998 8:23:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Canadian Crude Separators Inc. 2nd Quarter Results CANADIAN CRUDE SEPARATORS INC. ANNOUNCES RECORD 2ND QUARTER RESULTS Date: 7/29/98 Stock Symbol: CCR Canadian Crude Separators Inc. today announced results for the six months ended June 30, 1998. Three Months Ended Six Months Ended June 30 June 30 $000 except where noted 1998 1997 1998 1997 ------------------------------------------------------------- Revenue 8,403 5,619 22,670 14,114 ------------------------------------------------------------- EBITDA 1,605 1,044 7,483 4,158 Per share ($) 0.12 0.11 0.59 0.46 ------------------------------------------------------------- Net income 255 169 2,840 1,534 Per Share ($) 0.02 0.02 0.22 0.17 ------------------------------------------------------------- Results for the first six months of 1998 continue to reflect the growth of the Company over the last year. Revenue for the first half of 1998 was $22.7 million (a 61% increase over 1997). Optimization of existing assets, an expanded fleet of service rigs, and new facilities in the treating and waste division contributed to this increase. The positive impact of efforts to improve the efficiency of operations is reflected in the increase in EBITDA to $7.5 million compared to $4.2 million in 1997. As a percent of revenue, EBITDA increased to 33% for the first two quarters of 1998 from 29% in 1997. Net income increased by 85% or $1.3 million for the first six months of 1998 compared to the same period in 1997. Net income as a percentage of revenue increased to 13% in 1998 from 11% in 1997. Results for the second quarter show continued improvement over the same period in 1997. Revenue, EBITDA, and Net Income for the second quarter of 1998 were 50% higher than the second quarter of 1997. Dave Werklund, President and CEO, said "we have been very successful at improving our results through acquisitions, the installation of new facilities, and optimization of existing facilities. The current price of heavy oil has affected some of our operations, but we expect that strong natural gas activity and continued high conventional oil activity levels will ensure we achieve our goals. We remain optimistic about the long-term industry fundamentals and expect demand for our services to continue, setting the stage for sustained profitability and growth for the Company. Our cash flow and earnings continue to grow and, in combination with a strong balance shoot, we will continue to pursue growth opportunities in our core businesses,"

To: Kerm Yerman who wrote (11936)	7/30/1998 8:26:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Alliance Energy Inc. Six Months Results Ending May ALLIANCE ENERGY INC. ANNOUNCES RESULTS FOR SIX MONTHS ENDED MAY, 1998 Date: 7/28/98 6:48:07 PM Stock Symbol: AEI Alliance Energy Inc. (Alberta Stock Exchange trading symbol "AEI") is pleased to provide the following information to its shareholders with respect to the financial results for the six months ended May, 1998. Summary: 1998 1997 Change Gross oil & gas revenue 1,926,847 1,186,154 62% Operating expenses 677,743 506,157 34% General and administrative expense 95,206 131,163 (27%) Net Earnings 68,427 48,682 41% Net Earnings per Share $0.00 $0.00 Funds from Operations 861,621 351,473 145% Funds from Operations per Share $0.06 $0.03 Production volume (BOE) 115,002 50,632 127% BOE/D 632 278 127% Oil Price (BOE) $16.75 $23.43 (29%) Netback after G & A (BOE) $7.23 $7.67 (6%) Shares outstanding at period 15,105,583 13,902,583 9% Despite the falling oil price from an average of $23.42 per barrel the first six months of 1997 to $16.75 per barrel in the first half of this year and 98% of Alliance Energy Inc.'s production is oil, the company has maintained its net back of $7.23 per barrel this year compared to $7.67 per barrel a year ago. Alliance has also maintained a significant growth in production, revenue, cash flow, earnings, and has reduced general and administration expenses and operating expenses per barrel. Production for the first six months increased 127% to 632 BOPD compared to 278 BOPD in 1997. Light and medium oil accounts for 94% of our production volume, heavy oil is 4% and gas is 2%. This increase in production was achieved without increasing the capital expenditures to a higher level. The cumulative capital expenditures for the first six months of 1998 is $2.0 million verses $4.2 million for full year of 1997. The shares outstanding has increased 9% to 15.1 million shares compared to 13.9 million shares at year end November 30, 1997. The total debt has increased 19% to $4.2 million compared to $3.5 million at year end 1997. Revenue increased 62% to $1,926,847 compared to $1,186,154 for the first six months in 1997. Cash flow has increased 145% to $861,621, despite a 29% decrease in oil price to $16.75 from $23.42. Operating costs per barrel has been reduced by 41% to $5.89 per barrel and G & A per barrel has reduced 68% to $0.83 per barrel from $2.59 per barrel in 1997. These are the two reasons that the overall net back remains fairly consistent at $7.23 per barrel even at today's low oil price. Cash flow per share has increased 100% to $0.06 per share for the first six months 1998 from $0.03 per share in 1997. Earnings has increased 41% to $68,427 compared to $48,682 for 1997. At current production level an increase of every US $1.00 price translates to an increased cash flow of $0.02 per share per year. During the second quarter Alliance drilled the third development horizontal well at Lost Horse Hill (50% Working Interest), and a dry hole at Carlyle (100% WI). Subsequent to the 2nd quarter, Alliance had drilled a dry hole Gainsborough (100% WI) and has the following prospects in the remaining capital budget for 1998, one exploration well at Thirty Lake (100% WI) and two development horizontal wells at Lost Horse Hills (50% WI) and Tilston (40% WI). Capital budget for 1998 is 3.1 million. Two hundred barrels of heavy oil production will remain shut in until the oil price recovers. Fiscal Profit Profit/Share Cash Flow Cash Revenue YTD six Flow months per share 1996 ($118,846) (0.01) 172,296 0.02 $ 886,505 1997 $48,682 0.00 351,473 0.03 $1,186,154 1998 $68,427 0.00 861,621 0.06 $1,926,847

To: Kerm Yerman who wrote (11936)	7/30/1998 8:34:00 AM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

Financial Post / Shell Canada's Gains Offset Low Oil Prices Shell Canada Ltd. mitigated the impact of low oil prices in the second quarter with the sale and leaseback of its corporate headquarters and by buying tax losses from an affiliated company. The integrated oil and gas producer said yesterday earnings for the three months ended June 30 were $126 million (43› a share), up 14% from $111 million (33›) last year, including a $32-million gain from the real estate sale. "We are pleased we were able to sustain our earnings and investment program during a period when the prices of many of our commodity products declined," said president and chief executive Chuck Wilson. Shell shares (SHC/TSE) closed yesterday at $26.25, down 50›. Cash flow was $186 million for the period, down from $209 million a year ago. Earnings from Shell's resources group were down to $33 million from $47 million, while the company's products division contributed $65 million, down from $72 million. Production volumes were softer because of asset sales and this spring's forest fires in Alberta, which forced the company to temporarily shut in some oil production. Natural gas production for the period was 580 million cubic feet a day, down from 626 million a year ago. Oil production was 22,400 barrels a day, down from 27,400. The company said it was able to reduce its tax expenses by acquiring business losses from an unidentified related company. The reduction will continue for the rest of the year and is expected to offset corporate expenses for the period, Shell said. The value of the business losses was not disclosed. Earlier this year, the company became the owner of its downtown Calgary office building, which it had leased for 20 years, after exercising an option to buy. It then sold it for $142 million in a deal that closed June 1.

To: Kerm Yerman who wrote (11936)	7/30/1998 8:39:00 AM
From: Kerm Yerman	Respond to of 15196

Financial Post / Markets Remain Tepid To Oilpatch Equity Issues Canada's oil and gas exploration companies will continue to find equity markets unreceptive to new stock issues unless there's a considerable recovery in oil prices, says a report on industry financings released yesterday. Calgary-based Sayer Securities Ltd. says the total value of equity financings was off 32% during the first six months of the year -- to $1.03 billion from $1.52 billion during the same period in 1997. During the second quarter, the industry raised $427.7 million in equity, down from $673.3 million a year ago. "July doesn't look much better either," said research manager Sarah Clayton. "There has been an across-the-board drop in equity financings this year regardless of company size," the report says. "Larger companies have shifted their focus away from equity and toward the debt market, while the equity market for smaller companies is extremely selective." The industry has been an active issuer of stock because of its large cash requirements to fund exploration programs. Royalty trusts, which until last year represented a major source of cash, kept a low profile, their unit values battered by low income distributions because of the downturn in commodity prices. During the six months, there were only three royalty trust issues -- all by established companies -- for a total of $169.5 million. There were no initial public offerings, compared to six issues in 1997 that raised $478.6 million. Larger companies able to tap the debt market raised a combined $1.53 billion through 20 debt placements, up from $1.25 billion through 13 debt placements during the same period last year. "The increase in debt issues is not completely surprising," says the report. "[While] a portion of the debt raised each year is part of the revolving debt programs of major companies, the increase is also a reaction to relatively low interest rates which make debt a more attractive financing option." Larger companies are also enjoying improved access to international debt markets. Overall, treasury financings -- including equity, debt and royalty trusts -- decreased 16% for the first six months to $2.7 billion, compared with $3.2 billion. The number of deals was also down to 70 from 214 during the first six months of 1997.