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

To: Herb Duncan who wrote (11990)	8/5/1998 11:26:00 AM
From: SofaSpud	Respond to of 15196

EARNINGS / New Cache Q2 Results NEW CACHE ANNOUNCES SUCCESSFUL GAS DISCOVERY CALGARY, Aug. 4 /CNW/ - The second quarter was highlighted by a successful gas discovery at Bronson, with two new gas wells coming on production at Windfall and Bronson and an exciting gas discovery at Valhalla. New Cache has participated in 27 gross (12.55 net) wells during the first six months, resulting in four (0.85 net) oil wells, 14 gas wells (6.4 net) and nine dry holes (5.27 net) for a success rate of 67%. Comparatively, New Cache had participated in 31 gross (8.6 net) for the six months ended 1997. New Cache also acquired 18,621 net acres of undeveloped land in the first half with an average 63% working interest. The two Doris plants are running at full capacity with net sales averaging 21.317 mmcfd and 162 bpd of liquids through the first six months. New Cache also acquired a 33% working interest in two potential shut-in gas wells and 12,672 net acres of undeveloped land just north of Doris for $1.024 million. Proved and probable reserves were 1.475 Bcf resulting in an acquisition cost of $6.94 per boe excluding value for acreage. New Cache has identified potential development locations for drilling this winter and this acquisition increases New Cache's working interest from 33% to 66% in the lands. At Bronson, a successful Wabamun gas well (50% WI) is currently being pipeline connected and is expected to be placed on stream in mid-August. Based on the results of an extended test, the well will be placed on production at initial production rates of 8.0 mmcfd gross (4.0 mmcfd net) with 15 barrels per million of liquids. The initial test well at Bronson (50% WI) completed in the Gething, is currently producing gas at 1.5 mmcfd gross (.750 mmcfd net) with liquids. A step out farm-in well (50% WI BPO, 30% WI APO) is currently drilling and with success two additional locations have been identified for drilling in the fourth quarter. Successful wells can yield recoverable reserves of up to 20 Bcf with initial production rates of 5 to 8 mmcfd. At Windfall (50% WI), a winter gas discovery was placed on production in April and is currently producing at 4.0 mmcfd gross (2.0 mmcfd net) with 25 barrels per million of liquids. A development well has been drilled and completed in the adjacent section and the well is expected to be on stream in September. At Valhalla, a successful farmout gas well was drilled on Company lands and tested at rates in excess of 4 mmcfd. New Cache has a royalty interest before payout and a 30% WI after payout. Development wells have been identified on two offset sections in which New Cache holds a 75% WI on one section and a 30% WI on the other. New Cache recorded increased cash flow results in the first half despite oil prices down 32%. Cash flow for the six months ended May 31, 1998 was $6.249 million ($O.44 per share) up from $5.066 million ($0.56 per share) in 1997. Cash flow for the second quarter in 1998 was $2.686 million ($0.19 per share) compared to $2.106 million ($0.24 per share) in 1997. Oil and liquids production for the first half was 1,807 bopd down slightly from the 1,841 bopd average in the 1997 period. The average oil price was down 32% from $26.66 per barrel in 1997 to $18.25 per barrel for the current period. Gas production has tripled to average 29.185 mmcfd for the six months ended May 31, 1998 up from 7.410 mmcfd recorded in 1997. Production additions at Doris, Bronson and Windfall have contributed to this successful result. Gas prices improved 12% to average $1.88 per mcf in the first half compared to $1.68 per mcf average in 1997. A net loss of $1.070 million ($0.08 per share) was recorded in the first six months of 1998 compared to a profit of $0.846 million ($0.09 per share) in 1997. The Company invested $18.274 million in capital projects during the first six months. At May 31, 1998 New Cache had debt, net of working capital, of $33.989 million and a line of credit of $45 million. New Cache currently has 14.2 million shares issued and outstanding and on a fully diluted basis, 15.4 million shares. ''THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN'' -30- For further information: Raymond G. Smith, President and CEO or Keith E. Macdonald, Vice President, Finance, (403) 263-3447, Website: www.newcache.com, E-mail Address: ncp@cadvision.com

To: Herb Duncan who wrote (11990)	8/5/1998 11:28:00 AM
From: SofaSpud	Respond to of 15196

CORP. / Velvet Update VELVET RELEASES CORPORATE UPDATE CALGARY, Aug. 4 /CNW/ - VELVET EXPLORATION LTD. (the ''Company'') is pleased to provide the following Corporate update. 1. DRILLING RESULTS Well No. Location Working Comments Interest -------- -------- -------- -------- 15 08-26-44-24W4 40.0% Cased for Ellerslie oil, Glauconitic gas 16 15-14-44-24W4 40.0% Cased for Ellerslie gas 17 08-18-44-24W4 40.0% Cased for Ellerslie gas 18 04-16-44-24W4 40.0% Cased for Ellerslie and Glauconitic gas 2. COMPLETION Well No. Location Working Comments Interest -------- -------- -------- -------- 13 02-33-44-23W4 57.5% Production test at 2 mmcf/d - awaiting tie-in 14 10-08-44-24W4 57.5% Testing oil zone 15 08-26-44-24W4 40.0% Well flowing 120 bopd light oil 16 15-14-44-24W4 40.0% Production test at 2 mmcf/d - awaiting tie-in 17 08-18-44-24W4 40.0% Production test at 2 mmcf/d - awaiting tie-in 18 04-16-44-24W4 40.0% Awaiting completion 3. PRODUCTION The Company's production is currently 6 mmcf/d of gas and 265 bopd of oil and NGL's, and is expected to increase, by the end of the third quarter, as wells No.'s 13, 16, 17 and 18 are tied into the AltaGas Bonnie Glen gas plant. The Company remains on schedule to achieve its 1998 year end production targets. 4. ACQUISITION The Company has closed its $2.4 million acquisition of certain lands, wells and facilities in the Hobbema core area. This transaction has an effective date of June 1, 1998. 5. FINANCIAL The Company has negotiated a $5 million credit line, with a Canadian charter bank, to provide Velvet with access to debt in order to capitalize on acquisition opportunities. The Company's current cash position is $1.4 million with no debt. 6. STONEY NAKODA PERMIT The company is currently finalizing the oil and gas permit with IOGC and the Stoney Nakoda Nation for the rights to 25,000 hectres (61,750 acres) of exploration land in a gas prone foothills fairway west of Calgary. Details of the Stoney Nakoda transaction will be released upon execution of the final permit and approval from the Vancouver Stock Exchange. Velvet Exploration Ltd. is a Canadian energy company engaged in the exploration, development and production of natural gas and crude oil. The Company's common shares are listed on the Vancouver Stock Exchange under the trading symbol ''VLV''. VELVET EXPLORATION LTD. (signed) ----------------------- Ken S. Woolner, P.Eng. President and C.E.O. The Vancouver Stock Exchange assumes no responsibility for the accuracy of this release and neither approves nor disapproves of the same -30- For further information: please contact our investor relations line at 1-888-689-5659, in Calgary at (403) 265-0088, or by fax at (403) 265-0086

To: Herb Duncan who wrote (11990)	8/5/1998 11:30:00 AM
From: SofaSpud	Respond to of 15196

FIELD ACTIVITIES / Cirque Fiskerton F3 Well CIRQUE 100% SUCCESS IN UK CALGARY, Aug. 5 /CNW/ - The Fiskerton F3 Well was cased to 1645 meters as an oil well. The well located on the Fiskerton Structure encountered 14 meters (46 feet) of oil bearing sand with no water contact. The well is identical to the F1 discovery well that flowed 35 degrees API oil at rates up to 660 barrels of oil per day. The Fiskerton F3 and F2 wells will be completed during the last week in August. Construction on the Fiskerton West New Pool Wildcat location will commence on August 10th with an anticipated start-up drilling date of August 24th. The rig is currently sitting on the Fiskerton East Pad. Pipeline construction will commence in the UK in late August with an anticipated late October start-up. Oil production in the UK is expected to increase from 300 bopd (141 bopd net) to 1400 bopd (670 bopd net) once the pipeline becomes operational. Cirque Energy (UK) Limited has purchased the before pay out interest in the F1 discovery well, increasing its interest to 47% before pay out and 48.2% interest after pay out. In Canada, Cirque purchased a 7.2% working interest in its Cessford oil property increasing the Company's interest to 49.5%. The Turin 3-D seismic program in Southern Alberta has been completed adding several additional locations to our inventory. Three wells will be drilled in Turin starting August 15, 1998. Between Canada and the United Kingdom, production remains on track to reach a minimum 1500 barrels of oil equivalent per day by December 31, 1998. ON BEHALF OF THE BOARD OF DIRECTORS Glen A. Phillips President & CEO The Alberta Stock Exchange has neither approved nor disapproved the contents of this news release. -30- For further information: Glen A. Phillips, President & CEO or, Ross A. Jones, Vice President of Finance, Cirque Energy Corp., (403) 266-4344, Fax: (403) 290-0043, Website: cirque-energy.com, Email: info@cirque-energy.com

To: Herb Duncan who wrote (11990)	8/5/1998 11:33:00 AM
From: SofaSpud	Read Replies (4) \| Respond to of 15196

FIELD ACTIVITIES / Belair - Kakwa BELAIR PARTICIPATES IN KAKWA WABAMUN TEST CALGARY, Aug. 5 /CNW/ - BelAir Energy Corporation announces that it is participating in the drilling of Kakwa 15-33-61-5 W6M. The subject well has been spudded and is programmed to drill to a total depth of 4450 metres. The targeted Wabamun test is based on 3-D seismic and is the same target formation in which Chevron recently announced their discovery well Chevron et al Musreau 6-25-62-6 W6M. The Kakwa well is approximately five miles from the Chevron well. Chevron had announced that the well produced on a restricted rate of 20 mmcfpd, but that the well had a productive capability in excess of 40 mmcfpd. Industry analysts suggest that the Chevron discovery could be part of the largest gas field in Alberta. ''A successful well could have a substantial impact on BelAir,'' states Victor M. Luhowy, President of BelAir Energy, ''both in terms of reserve adds and future cash flow. Our working interest in the well fits well within our risk management profile for our size of company, yet a successful result would have a significant impact on our company.'' BelAir's working interest in the well is five per cent. BelAir Energy Corporation is based in Calgary and is involved in the exploration, exploitation and production of petroleum reserves in Western Canada. BelAir is listed on the Alberta Stock Exchange and trades under the symbol ''BGY''. For more information on BelAir Energy Corporation, please visit BelAir's website www.belairenergy.com starting August 11, 1998. The Alberta Stock Exchange has neither approved nor disapproved the information contained herein. -30- For further information: Victor M. Luhowy, President & Chief Executive Officer, or Ken MacRitchie, Vice President & Chief Financial Officer, (403) 265-1411, Fax: (403) 263-8119

To: Herb Duncan who wrote (11990)	8/5/1998 11:35:00 AM
From: SofaSpud	Read Replies (6) \| Respond to of 15196

PROPERTY ACQUISITIONS / Kintail Energy KINTAIL ENERGY CLOSES ACQUISITION AND FINANCING CALGARY, Aug. 5 /CNW/ - ACQUISITION KINTAIL ENERGY INC. has closed its previously announced acquisition of gas properties in the Watelet area of Central Alberta. Production is approximately five mmcf equivalent per day and the deal includes 30 sections of undeveloped lands with an average working interest of 80%. The acquired properties are operated by Kintail and numerous development and exploration opportunities will be exploited. The purchase price was $ 8 million and was paid by a combination of swap of properties, cash and Kintail shares issued to the vendor. Kintail expects to benefit from strong gas prices as pipelines to the United States are expanded in the fall of 1998. FINANCING A private placement was closed consisting of 2,097,433 shares and 1,045,716 warrants for gross proceeds of $ 1,573,074. The financing was done at a price of $ 0.75 per share and includes one half warrant per share. Each whole warrant entitles the holder to acquire one common share at a price of $ 1.00 for a period of one year. The common shares, warrants and common shares issued on exercise of the warrants are restricted from trading for a period of one year. No commissions were paid on the fund raising and after expenses of the issue, estimated at $ 5,000, net proceeds are approximately $ 1,568,000. This was the second and final closing of the private placement financing announced in July, 1998. Kintail Energy Inc. is an aggressive exploration and production Company, which trades on the Alberta Stock Exchange under the symbol 'KTE'. The Alberta Stock Exchange has neither approved nor disapproved the contents of this press release. -30- For further information: Paul Ward McRae Read, Chairman, President and Chief Executive Officer, (403) 269-2240, Fax: (403) 266-8893