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

To: Kerm Yerman who wrote (11953)	7/30/1998 11:56:00 AM
From: SofaSpud	Respond to of 15196

ENERGY TRUSTS / Pengrowth Q2 Results & Distribution PENGROWTH CORPORATION/PENGROWTH ENERGY TRUST ANNOUNCES SECOND QUARTER 1998 RESULTS AND AUGUST CASH DISTRIBUTION CALGARY, July 30 /CNW/ - Pengrowth Corporation (''Pengrowth''), administrator of Pengrowth Energy Trust (''EnergyTrust''), announced today that the gross revenue for the three months ended June 30, 1998 increased to $40,474,566 from $21,607,389 for the same period in 1997. Distributable income for the three months ended June 30, 1998 was $17,053,951 or $0.3602 per unit compared to 1997 second quarter distributable income of $12,533,099 or $0.5422 per trust unit. This decline in distributable income per unit resulted from lower commodity prices and four days of loss of production and power outages during the Swan Hills forest fires in early May. The average price per boe fell 13.4% to $17.37 in 1998 compared to $20.05 per boe for the second quarter of 1997. << For Three Months Ended June 30, 1998 June 30, 1997 ---------------------- ------------- ------------- Oil and Gas Revenue - gross $40,474,566 $21,607,389 Distributable Income $17,053,951 $12,533,099 Distributable Income/Unit $0.3602 $0.5422 For Six Months Ended June 30, 1998 June 30, 1997 -------------------- ------------- ------------- Oil and Gas Revenue - gross $88,042,516 $46,194,927 Distributable Income $38,249,904 $26,659,569 Distributable Income/Unit $0.8083 $1.1554 >> Production averaged 24,713 boe per day for the second quarter 1998 compared to 11,912 boe per day for the comparable period in 1997, an increase of 107%, primarily attributable to the Judy Creek/Swan Hills acquisition of October 1997. The cash distribution payable August 15, 1998 will be the regular monthly cash distribution of $0.11 per trust unit. The ex-distribution date for this payment was July 29, 1998. -30- For further information: PENGROWTH CORPORATION, James S. Kinnear, President, Jan Young, Investor Relations, Calgary, (403) 233-0224, Toll Free: (800) 223-4122, Fax: (403) 265-6251, E-mail: pengrowth@pengrowth.com, Website: wwwpengrowth.com; Sally Elliott, Investor Relations, Toronto, (416)-362-1748, Toll Free: (888) 744-1111, Fax: (416) 362-8191, E-mail: sallye@pengrowth.com

To: Kerm Yerman who wrote (11953)	7/30/1998 2:02:00 PM
From: SofaSpud	Respond to of 15196

ENERGY TRUSTS / AEC Pipeline LP Q2 Results and Distribution AEC PIPELINES, L.P. ANNOUNCES SECOND QUARTER RESULTS CALGARY, July 28 /CNW/ - AEC PIPELINES, L.P. today reported financial and record operating results for the three months ending June 30th, 1998. Distributable Cash totaled $20.3 million ($0.19 per unit) compared to $23.5 million ($0.22 per unit) in the second quarter of 1997. Net income totaled $15.5 million ($0.15 per unit) compared to $14.4 million ($0.13 per unit) for the comparable quarter in 1997. On June 15, 1998, the General Partner approved the distribution of $0.19 per partnership unit on July 30, 1998 to holders of record on June 30, 1998. For the six months ending June 30, 1998, the Partnership has distributed $0.38 per unit and reported net income of $0.29 per unit. As the Partnership began operations in April of 1997, prior year six-month figures are not comparable to the 1998 first half results. OPERATIONS Record quarter throughputs were achieved on the Cold Lake and AOSPL pipelines averaging 224,000 and 235,000 barrels per day, respectively. Both pipelines are supported by long-term contractual agreements, which provide consistency in financial results and stability against throughput fluctuations. Express Pipeline System average throughput was 10% higher than the same period in 1997. The Platte Pipeline testing program is underway and remedial action is expected to result in the restoration of full operating pressure early in the first quarter of 1999. OUTLOOK The staged expansion of the AOSPL pipeline is expected to commence in the second quarter of 1999 and be complete in April 2000. The initial phase of expansion will increase capacity from 238,000 barrels per day to 275,000 barrels per day. Discussions regarding the timing of further expansions are ongoing with the Syncrude partners to meet their planned expansion program. Production from the Syncrude facility is committed to AOSPL by contract. AEC Pipelines, L.P. is a Canadian limited partnership engaged in the transportation of crude oil through the Alberta Oil Sands, Cold Lake, Wabasca River, Express and Platte pipelines. ADVISORY - Certain information regarding the Limited Partnership set forth in this document including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with those plans or operations, such as loss of market, currency fluctuations, environmental risks, industry competition, and ability to access sufficient capital from internal and external resources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. << AEC PIPELINES, L.P. UNAUDITED COMBINED STATEMENT OF INCOME AND DISTRIBUTABLE CASH (thousands of dollars, except per unit amounts) Quarter ended Six months ended June 30, June 30, ------------- ---------------- 1998 1997 1998 1997 ------ ------ ------ ------ Tariff revenue from Pipeline Assets $ 22,243 $ 20,910 $ 46,197 $ 21,203 -------- -------- -------- -------- Expenses Operating 6,460 5,884 14,672 5,935 Depreciation 3,828 3,519 7,632 3,581 -------- -------- -------- -------- 10,288 9,403 22,304 9,516 -------- -------- -------- -------- Income before investment income 11,955 11,507 23,893 11,687 Add (deduct): Interest income on investment in AEC Express Holdings Ltd. 4,301 3,875 8,554 3,875 Other interest income 339 9 495 9 Interest expense (222) - (287) - Management fee payable by the Partnership to the General Partner (490) (483) (964) (483) -------- -------- -------- -------- Income before income taxes 15,883 14,908 31,691 15,088 -------- -------- -------- -------- Income taxes of Alberta Oil Sands Pipeline Ltd. Current 440 625 1,347 625 Deferred (36) (84) (56) (84) -------- -------- -------- -------- 404 541 1,291 541 -------- -------- -------- -------- Net income 15,479 14,367 30,400 14,547 Add (deduct): Depreciation 3,828 3,519 7,632 3,581 Deferred income taxes (36) (84) (56) (84) Interest income on investment in AEC Express Holdings Ltd. (4,301) (3,875) (8,554) (3,875) AEC Express Operating Cash 9,028 9,109 17,812 9,109 Capital expenditures on Pipeline Assets (2,223) (2,408) (12,460) (2,408) Capital expenditures on the Express Pipeline System (2,990) - (5,791) - Capital expenditures funded by AEC 264 2,527 761 2,527 Long-term borrowings 2,000 - 11,186 - Reserve for capital expenditures - - 191 - Reserve for future distributions (776) 319 (575) 319 -------- -------- -------- -------- Distributable Cash $ 20,273 $ 23,474 $ 40,546 $ 23,716 -------- -------- -------- -------- -------- -------- -------- -------- Per Class A Unit Distributable Cash $ 0.19 $ 0.22 $ 0.38 $ 0.22 -------- -------- -------- -------- -------- -------- -------- -------- Net income $ 0.15 $ 0.13 $ 0.29 $ 0.14 -------- -------- -------- -------- -------- -------- -------- -------- AEC PIPELINES, L.P. UNAUDITED COMBINED BALANCE SHEET (thousands of dollars) June 30, December 31, 1998 1997 ------ ------ ASSETS Current assets Cash and short-term investments $ 5,159 $ 3,236 Accounts receivable 10,408 7,932 Accrued interest receivable - - AEC Express Holdings - 12,571 --------- --------- 15,567 23,739 --------- --------- Investment in AEC Express Holdings Ltd. 200,000 200,000 --------- --------- Capital assets 198,287 193,459 --------- --------- $ 413,854 $ 417,198 --------- --------- --------- --------- LIABILITIES AND PARTNERS' EQUITY Current liabilities Partnership distributions payable Public unitholders $ 6,082 $ 6,082 Alberta Energy Company Ltd. 13,786 20,324 General Partner 405 598 Accounts payable 2,075 3,347 Due to General Partner 6,113 3,199 --------- --------- 28,461 33,550 --------- --------- Alberta Oil Sands Pipeline Ltd. deferred income taxes 3,091 3,147 --------- --------- Long-term debt (Note 2) 16,402 5,216 --------- --------- Partners' equity Limited partners 363,897 373,079 General Partner 2,003 2,206 --------- --------- 365,900 375,285 --------- --------- $ 413,854 $ 417,198 --------- --------- --------- --------- AEC PIPELINES, L.P. UNAUDITED COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION SIX MONTHS ENDED JUNE 30, (thousands of dollars) 1998 1997 ------ ------ Operating activities Net income $ 30,400 $ 14,547 Depreciation 7,632 3,581 Deferred income taxes of Alberta Oil Sands Pipeline Ltd. (56) (84) --------- --------- Cash flow from operations 37,976 18,044 Net change in non-cash working capital 5,006 18,957 --------- --------- 42,982 37,001 --------- --------- Investing activities Additions to capital assets (12,460) (2,408) Acquisition of assets from Alberta Energy Company Ltd. - (186,162) Investment in AEC Express Holdings Ltd. - (200,000) --------- --------- (12,460) (388,570) --------- --------- Financing activities Long-term borrowings 11,186 - Partners' capital contributions 761 388,591 Partnership distributions (40,546) (23,716) --------- --------- (28,599) 364,875 --------- --------- Increase in cash and short-term investments 1,923 13,306 Cash and short-term investments at beginning of period 3,236 - --------- --------- Cash and short-term investments at end of period $ 5,159 $ 13,306 --------- --------- --------- --------- 1. Formation of the Partnership On January 1, 1997, AEC Pipelines, L.P. (the ''Partnership'') acquired Alberta Energy Company Ltd.'s (''AEC'') 19% joint venture interest in the Wabasca River Pipeline in consideration for Class B partnership units. On April 9, 1997, the Partnership completed a public offering of Class A limited partnership units, represented by instalment receipts, for net cash proceeds of $295,280,000. The second instalment of $4.00 per Class A Unit was due and payable on or before March 31, 1998. The proceeds from the issue were applied to acquire AEC's interest in the Cold Lake and AOSPL systems, and to make a $200,000,000 investment in AEC Express Holdings Ltd., the entity which holds AEC's interest in the Express Pipeline System. 2. Long-term debt The Partnership's long-term debt (June 30, 1998 - $16,402,000; December 31, 1997 - $5,216,000) has been incurred in connection with the acquisition of materials related to an expansion of the AOSPL system. -30- For further information: Hector McFadyen, President & CEO, AEC Pipelines Ltd., (403) 266-8115, Investor Contact: Greg Kist, (403) 266-8495, Media Contact: Dick Wilson, (403) 266-8127

To: Kerm Yerman who wrote (11953)	7/30/1998 2:05:00 PM
From: SofaSpud	Respond to of 15196

PIPELINES / BC Gas Q2 Results BC GAS INC. REPORTS SIX MONTH EARNINGS PER SHARE UP 9% VANCOUVER, July 30 /CNW/ - BC Gas Inc. today reported unaudited earnings for the six months ended June 30, 1998 of $50.4 million, up from $48.5 million for the equivalent period in 1997 after adjusting 1997 reported earnings for the effect of seasonal rates. These earnings, on a per share basis, were up $0.11 to $1.30 in 1998 from $1.19 in 1997 as a result of fewer common shares outstanding due to the Company's share repurchase program and higher earnings. Reported earnings for the first six months of 1997 were $51.6 million, or $1.27 per share, as seasonal rates were in effect during 1997. Seasonal rates, which were introduced January 1, 1994, have been discontinued January 1, 1998 for all gas utility customer classes at the direction of the British Columbia Utilities Commission. Seasonal rates increased the Company's earnings during the two winter quarters, with an offsetting decrease in the two summer quarters. The move away from seasonal rates in 1998 will have no impact on annual net earnings. The tables below set out the contribution to earnings by operating segment for the six months and three months ended June 30, 1998 and 1997. << Net Earnings (Loss): (in millions of dollars except per share amounts) ------------------------------------------------------------------------- Six months 1998 1997 1997 ended June 30 Adjusted for As reported seasonal rates ------------------------------------------------------------------------- Per Per Per Share Share Share ----------------------------------------------------------- Gas utility operations $ 39.2 $ 1.01 $ 37.5 $ 0.92 $ 40.6 $ 1.00 Oil pipeline operations $ 12.4 $ 0.32 $ 11.4 $ 0.28 $ 11.4 $ 0.28 Related businesses $ 0.2 $ 0.00 $ 0.2 $ 0.00 $ 0.2 $ 0.00 Corporate (BC Gas Inc.) (1.4) (0.03) (0.6) (0.01) (0.6) (0.01) ------ ------ ----- ------ ----- ------ Net earnings $ 50.4 $ 1.30 $ 48.5 $ 1.19 $ 51.6 $ 1.27 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Three months 1998 1997 1997 ended June 30 Adjusted for As reported seasonal rates -------------------------------------------------------------------------- Per Per Per Share Share Share ----------------------------------------------------------- Gas utility operations $ (7.1) $ $ (8.8) $(0.21) $ $(0.56) (0.18) (23.4) Oil pipeline operations 6.1 0.16 5.3 0.13 5.3 0.13 Related businesses 0.5 0.01 0.6 0.01 0.6 0.01 Corporate (BC Gas Inc.) (1.0) (0.02) (0.4) 0.00 (0.4) 0.00 ----- ------ ----- ---- ----- ---- Net earnings $ (1.5) $ $ (3.3) $(0.07) $ $ (0.42) (0.03) (17.9) ------------------------------------------------------------------------- >> GAS UTILITY OPERATIONS ---------------------- After adjusting 1997 earnings for the impact of seasonal rates, earnings for gas utility operations for the six months ended June 30 were $39.2 million in 1998 as compared to $37.5 million in 1997 mainly due to productivity improvements, partially offset by a decrease in the authorized return on common equity from 10.25% in 1997 to 10.0% in 1998. BC Gas Utility Ltd. is continuing to actively pursue the Southern Crossing Project, a $350 million, 312 kilometre pipeline across southern B.C. An open season for capacity on Southern Crossing closed on June 26, 1998 with expressions of interest from third parties in excess of the available capacity. A progress report was filed with the B.C. Utilities Commission on July 3, 1998, and discussions with the third parties are continuing. OIL PIPELINE OPERATIONS ----------------------- Oil pipeline operating results for the six months ended June 30, 1998 increased by $1.0 million compared to the corresponding period in 1997 primarily due to increased throughput on both the Canadian and U.S. portions of the oil pipeline. On July 22, 1998, BC Gas announced that it and Trans Mountain Pipe Line Company Ltd. will join with Shell Canada Limited (Shell) and The Broken Hill Proprietary Company Limited (BHP) in a detailed feasibility study now underway for the $440 million Corridor Pipeline from Fort McMurray to Edmonton, Alberta. This study is part of the overall technical and commercial evaluation of Shell and BHP's proposed Athabasca Oil Sands Project in northern Alberta. The overall evaluation will be completed in early 1999 and, if the project is approved, BC Gas and Trans Mountain will build, own and operate the Corridor Pipeline. At any time prior to thirty days after final project approval, Shell and BHP have an option to take an equity interest of up to 49% in the pipeline. RELATED BUSINESSES ------------------ Related businesses comprise areas of activity related to energy and utility services. Earnings from these businesses for the first six months of 1998 were essentially unchanged compared to 1997. BC Gas has decided to exit the wholesale trading and commodity function in its non-regulated businesses. Accordingly, the Company's energy marketing subsidiary, Inland Pacific Energy Services Ltd., sold its natural gas contracts for nominal consideration effective July 1, 1998. BC Gas remains committed to providing industrial energy users with an array of energy-related services through various subsidiaries. On June 8, 1998, the Company announced its proposed offering of units in BCG Power Generation Limited Partnership. Upon closing, the partnership will be entitled to all of the net cash flow from the Company's Williams Lake electricity generating plant. BC Gas will continue to manage and operate the plant. The Company anticipates that the limited partnership units will be sold in August or September, subject to regulatory approvals and market conditions. CORPORATE --------- BC Gas Inc. is the holding company for the BC Gas group of companies. The increased loss of $0.8 million for the first six months of 1997 compared to the same period in 1997 reflects higher interest expense associated with borrowings to support the Company's share repurchase program. SHARE REPURCHASE PROGRAM ------------------------ At its meeting today, the Company's Board of Directors has approved, subject to regulatory approval, a new open market share repurchase program. Under its current program, which began August 15, 1996, the Company has repurchased a total of 3,742,400 common shares at an average price of $23.68, including 1,470,900 common shares repurchased at an average price of $27.45 during the period August 15, 1997 to July 31, 1998. A Notice of Intention which will soon be filed with the Toronto, Montreal and Vancouver stock exchanges will, subject to obtaining all necessary approvals, allow the Company to repurchase up to 2,100,000 common shares (representing approximately 5% of the 43,056,745 common shares of the Company issued and outstanding as at June 30, 1998) over the 12 month period commencing August 17, 1998. DIVIDENDS --------- The Directors of BC Gas Inc. have declared a quarterly dividend of $0.28 per share on the issued and outstanding COMMON SHARES of BC Gas Inc. The dividend is payable on the 31st day of August, 1998 to Shareholders of record at the close of business on the 15th day of August, 1998. BC Gas Inc. is a leading provider of energy and utility services in British Columbia through its two principal operating subsidiaries, BC Gas Utility Ltd. and Trans Mountain Pipe Line Company Ltd., and through a number of non-regulated related businesses. BC Gas Utility is the largest distributor of natural gas in British Columbia, serving 735,000 customers in more than 100 communities. Trans Mountain Pipe Line owns and operates the only pipeline transporting crude oil and refined petroleum products from Alberta to British Columbia and Washington State. BC Gas common shares are traded on the Toronto, Montreal and Vancouver stock exchanges under the symbol ''BCG''. << ------------------------------------------------------------------------- BC Gas Inc. - Highlights ------------------------------------------------------------------------- Six months ended June 30 1998 1997 ------------------------------------------------------------------------- FINANCIAL (in millions) Gross revenue Gas utility $ 404.9 $ 427.1 Oil pipeline 69.1 63.3 Other 22.5 20.6 ----------------------------- $ 496.5 $ 511.0 ----------------------------- Net earnings $ 50.4 $ 51.6 Capital expenditures $ 45.4 $ 54.0 Total assets $ 2,328.2 $ 2,277.7 ------------------------------------------------------------------------- COMMON SHARE DATA Earnings per share $ 1.30 $ 1.27 Dividends per share $ 0.53 $ 0.475 Equity per share $ 15.51 $ 15.83 Common shares - weighted average (in millions) 38.7 40.7 ------------------------------------------------------------------------- GAS UTILITY OPERATIONS Number of gas customers 734,892 721,327 Sales volumes (in petajoules) Natural gas sales 72.1 78.5 Transportation of gas 29.4 30.3 Throughput under fixed price contracts 48.0 50.2 ----------------------- 149.5 159.0 ------------------------------------------------------------------------- OIL PIPELINE OPERATIONS Transportation volumes (cubic metres per day) Canadian mainline 44,109 36,550 Jet fuel deliveries 3,109 3,260 ----------------------- Total throughput 47,218 39,810 ----------------------- U.S. mainline (included in Canadian mainline) 18,182 16,341 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BC Gas Inc. CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED In millions of dollars, except per share amounts Three months ended Six months ended June 30 June 30 ------------------------------------------------------------------------- 1998 1997 1998 1997 ------------------------------------------------------------------------- REVENUES Gas sales $ 125.1 $ 113.4 $ 378.8 $ 402.5 Petroleum transportation and terminalling 34.9 31.7 68.8 62.9 Electricity sales 6.8 9.2 16.5 16.6 Gas transportation 7.8 6.8 17.1 14.3 Other operating revenue 8.7 7.0 15.3 14.7 ------------------------------------------------------------------------- 183.3 168.1 496.5 511.0 ------------------------------------------- EXPENSES Cost of gas 59.9 66.5 188.3 216.4 Operation and maintenance 47.8 46.0 94.1 90.6 Depreciation and amortization 21.1 19.9 41.9 39.1 Property and other taxes 13.5 13.2 26.8 26.4 Financing costs 29.4 27.7 58.9 55.5 Income taxes 12.0 10.9 33.8 28.3 ------------------------------------------------------------------------- 183.7 184.2 443.8 456.3 ------------------------------------------- Earnings (loss) before non-controlling interest (0.4) (16.1) 52.7 54.7 Non-controlling interest 1.1 1.8 2.3 3.1 ------------------------------------------------------------------------- NET EARNINGS (LOSS) $ (1.5) $ (17.9) $ 50.4 $ 51.6 ------------------------------------------------------------------------- Common shares - weighted average (millions) 38.7 40.7 ------------------------------------------------------------------------- EARNINGS (LOSS) PER COMMON SHARE $ (0.03) $ (0.42) $ 1.30 $1.27 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BC Gas Inc. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED In millions of dollars ------------------------------------------------------------------------- June 30 1998 1997 ------------------------------------------------------------------------- ASSETS Current assets $ 126.4 $ 151.6 Property, plant and equipment 2,122.1 2,078.2 Other assets 79.7 47.9 ------------------------------------------------------------------------- $ 2,328.2 $ 2,277.7 -------------------------------------- LIABILITIES Current liabilities $ 580.5 $ 499.3 Long-term debt 1,040.7 1,031.2 Deferred income taxes 35.4 37.6 Non-controlling interest 75.0 75.7 ------------------------------------------------------------------------- $ 1,731.6 $ 1,643.8 SHAREHOLDERS' EQUITY 596.6 633.9 ------------------------------------------------------------------------- $ 2,328.2 $ 2,277.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BC Gas Inc. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION - UNAUDITED In millions of dollars ------------------------------------------------------------------------- Six months ended June 30 1998 1997 ------------------------------------------------------------------------- Cash provided by (used for) OPERATIONS Net earnings $ 50.4 $ 51.6 Items not involving cash Depreciation and amortization 41.9 39.1 Deferred income taxes 0.5 (1.3) Other (0.4) 0.4 ------------------------------------------------------------------------- 92.4 89.8 Changes in non-cash operating working capital 25.9 98.7 ------------------------------------------------------------------------- 118.3 188.5 ---------------------------- INVESTMENTS Property, plant and equipment (45.4) (54.0) Other assets 1.4 11.1 ------------------------------------------------------------------------- (44.0) (42.9) ---------------------------- FINANCING Reduction of short-term notes (43.0) (85.5) Increase in long-term debt 50.0 0.2 Reduction of long-term debt (19.1) (2.8) Issue of common shares 0.4 0.5 Common shares and share options purchased (22.3) (30.0) Dividends on common shares (20.5) (19.4) Other 0.3 - ------------------------------------------------------------------------- (54.2) (137.0) ---------------------------- Increase in cash 20.1 8.6 Cash (bank indebtedness), beginning of period (2.5) 29.4 ------------------------------------------------------------------------- Cash, end of period $ 17.6 $ 38.0 ------------------------------------------------------------------------ Cash is defined as cash and short-term investments or bank indebtedness. -------------------------------------------------------------------- >> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SEASONAL OPERATIONS ----------------------- Due to the seasonal nature of the Company's gas utility operations, interim earnings statements are not indicative of earnings on an annual basis. Seasonal rates, which were introduced January 1, 1994, have been discontinued January 1, 1998 for all gas utility customer classes at the direction of the British Columbia Utilities Commission. Seasonal rates increased the Company's earnings during the two winter quarters, with an offsetting decrease in the two summer quarters. The move away from seasonal rates in 1998 will have no impact on annual net earnings. Earnings for the first two quarters of 1997 would have been $48.5 million ($1.19 per share) had seasonal rates not been in effect during that time. 2. SUBSEQUENT EVENT -------------------- On July 22, 1998, the Company entered into an agreement to join with Shell Canada Limited (Shell) and The Broken Hill Proprietary Company Limited (BHP) in a detailed feasibility study now underway for the $440 million Corridor Pipeline. This study is part of the overall technical and commercial evaluation of Shell and BHP's proposed Athabasca Oil Sands Project in northern Alberta. The overall evaluation will be completed in early 1999 and, if the project is approved, the Company will build, own and operate the Corridor Pipeline. At any time prior to thirty days after final project approval, Shell and BHP have an option to take an equity interest of up to 49% in the pipeline. -30- For further information: Milton Woensdregt, Senior Vice President, Finance, Chief Financial Officer & Treasurer (604) 443-6604, email mwoensdregt@bcgas.com; David Bryson, Manager, Treasury Services and Investor Relations (604) 443-6527, cell (604) 868-0198, email dbryson@bcgas.com; bcgas.com