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

To: Kerm Yerman who wrote (11983)	8/1/1998 3:56:00 AM
From: Kerm Yerman	Respond to of 15196

Financial Post / Gulf Canada Resources Eyes More Asset Sales As Earnings Disappoint 'It is likely oil prices will remain under pressure and the business will be managed with that in mind' Gulf Canada Resources Ltd. said Friday it's putting another $350 million in Canadian oil and gas assets on the block to reduce debt after reporting a $55-million loss for the second quarter. The loss, which amounts to 18› a share, compares with a $10-million loss for the same period last year (6›). "It was a disappointing quarter in terms of financial results due to lower oil prices, so we are particularly pleased with the success of Gulf employees in managing those factors within our control," said president and chief executive officer Dick Auchinleck. "The company believes that it is likely that oil prices will remain under pressure for the remainder of 1998, and the business will be managed with that in mind." With the latest sales, the senior producer has increased its asset disposition target for the year to $1.35 billion. Gulf launched the ambitious debt-reduction program this year after entering the current low oil price cycle with a higher debt load than its competitors. The company is also hurting from the weak C$ because most of its debt is U.S.-based. So far, Gulf has negotiated $800 million in asset sales and received $587 million in cash. Its progress has impressed analysts, but not enough to rescue its stock (GOU/TSE), which closed at $5.60 on Friday, down 15›. Gulf has applied $500 million against long-term debt, which has been less than expected because the strong US$ has increased the book value of its U.S. debt by US$77 million. Spokeswoman Jennifer Martin said the western Canadian properties that are up for sale are outside Gulf's core areas, or ones in which it does not have a controlling interest. The assets are mostly in oil, producing about 15,000 barrels a day. Meanwhile, the company has postponed plans to spin off midstream properties like gas processing plants and gathering systems into a royalty trust, a package worth about $220 million. Martin said it will consider partnerships with third parties. Second-quarter cash flow was $83 million (22›), down from $106 million (38›) last year, mainly because of low oil prices. Revenue was $256 million, off from $290 million. Average daily production was 124,000 barrels of oil and 482 million cubic feet of natural gas.

To: Kerm Yerman who wrote (11983)	8/1/1998 3:58:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

Financial Post / Syncrude Reduces Costs Syncrude Canada Ltd. said Friday it has reduced the cost of producing a barrel of synthetic oil from Alberta's oil sands to $12.04, down from $20.32 for the corresponding period last year, when the plant was partially shut for maintenance. The consortium, whose single biggest owner is Imperial Oil Ltd., with a 25% stake, shipped more than 235,000 barrels a day during the second quarter, compared with 169,000 barrels last year. With an open-pit mine and upgrading operation on site, the joint venture reported lower operating costs of $242 million for the quarter, down from $299 million last year. Revenue and other figures were not reported, as Syncrude, a consortium owned by 10 oil companies and royalty trusts, makes public only selected operating results. "Given low oil prices, we are prudently managing our capital expenditures," chairman Eric Newell said. The recent unexpected shutdown of one of two coking units is expected to reduce overall production for the year to 77.5 million barrels, from 80 million previously anticipated. Synthetic oil, obtained by separating oil from the oil sands of northern Alberta, commands a higher price than conventional crude because it has a lower sulphur content. When completed, Syncrude plans to produce oil for $9 to $10 a barrel.

To: Kerm Yerman who wrote (11983)	8/4/1998 3:22:00 PM
From: SofaSpud	Respond to of 15196

DIVIDEND / Gulf Canada GULF CONFIRMS JULY 1998 DIVIDEND RATE FOR SERIES 1 PREFERENCE SHARES DENVER, Aug. 4 /CNW/ - Gulf Canada Resources Limited today announced that the dividend rate for the month of July 1998 for Gulf Canada Resources Limited's Fixed/Adjustable Rate Senior Preference Shares, Series 1, has been calculated at $0.022 per share. The dividend is payable August 12, 1998 to shareholders of record at the close of business on July 31, 1998. -30- For further information: Investor Relations / Public Affairs (303) 813-3800 or 888-345-4853 (GULF)

To: Kerm Yerman who wrote (11983)	8/4/1998 3:25:00 PM
From: SofaSpud	Respond to of 15196

ENERGY TRUSTS / Starcor Acquisition STARCOR ENERGY ROYALTY FUND ANNOUNCES CLOSING OF NATURAL GAS ACQUISITION CALGARY, Aug. 4 /CNW/ - Starcor Energy Royalty Fund (TSE - STR.UN) announced today that it has closed the $11.2 million acquisition of additional natural gas royalty and working interests in its existing lands and in new lands at its Jenner property in Southern Alberta. The combined royalty and working interest reserves acquired total 18.9 bcf of proven natural gas with a reserve life index of approximately 18.7 years. Starcor acquired an average 84% working interest in 116 producing gas wells directly offsetting existing operations plus an existing overriding royalty on 126 Starcor 100% working interest wells. Starcor also acquired the remaining 51% working interest in the Wardlow gas plant bringing its total interest to 100%. Starcor is an open ended royalty trust which makes regular monthly distributions and trades under the Toronto Stock Exchange symbol of STR.UN -30- For further information: Terry L. Parsons, Investor Relations Officer, Starvest Capital Inc., (403) 298-8498, Facsimile: (403) 262-1370, Alan MacDonald, Chief Financial Officer, (514) 392-9277, Facsimile: (514) 392-0004