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

To: SofaSpud who wrote (12022)	8/6/1998 8:41:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Seventh Energy - Corporate Update TSE SYMBOL: SEV.A ASE SYMBOL: SEV.B AUGUST 6, 1998 CALGARY, ALBERTA--Seventh Energy announces a further two steps in our plan to stabilize the Company's financial condition in light of the current oil price situation. Firstly, general and administrative costs have been reduced by approximately fifty percent to an annualized net amount, before capitalization, of $600,000. This has been achieved through the termination of six employees, the resignation of one employee, and the temporary elimination of the salary expense for the chief executive officer, all effective June 30, 1998. The core technical team necessary to manage and enhance the operating revenue of the Company's asset base have been retained. This will preserve the longer term goal, when crude oil prices recover, of returning Seventh to an active exploration company. Severance costs will pay out in two months. Secondly, the Company has recently negotiated the sale of various minor assets, including our Niton property, for a combined cash consideration of $600,000. Most of the value of the assets was in undeveloped lands, however a production loss of 25 barrels of oil equivalent per day will occur. Our production forecast for the current year is therefore revised downward to an average 675 barrels of oil equivalent per day. Sales proceeds and overhead savings will be used to reduce Seventh's long term debt and to finance minor capital projects in order to increase production rates. The Company is continuing to market additional non-producing assets in order to further strengthen our financial position. Long term debt plus working capital deficiency are currently estimated to amount to $6,000,000. Assuming an average $US 15 per barrel price for WTI crude for the last six months of 1998, cash flow for the full year is forecast to amount to $900,000, or $0.08 per share fully diluted. In 1999, when the full effect of the overhead reductions are realized, at an assumed WTI average price of $US 17 per barrel and a forecast average rate of 600 barrels of oil per day, cash flow is estimated to be $1,400,000, or $0.12 per share fully diluted. We are continuing our efforts to create a joint venture on our undeveloped lands at Hays-Enchant in order to increase production levels above these forecast rates. Seventh remains committed to realizing the value of the company's asset base. Along with these operational decisions, the Company is continuing to explore corporate alternatives which would recognize this value if combined into a financially stronger entity. Seventh also announces, as part of the overhead reductions noted above, the resignation of Mr. Howard T. Shikaze as Vice President Finance and Chief Financial Officer of the Company. Mr. Shikaze was a founder of Seventh and will remain as a director. Management and the Board wish to thank Mr. Shikaze for his contributions to the Company, especially for his efforts to weather the current financial difficulties.

To: SofaSpud who wrote (12022)	8/6/1998 8:44:00 PM
From: Herb Duncan	Respond to of 15196

ENERGY TRUSTS / RE: NCE Flow-Through (98) Limited Partnership Buys Flow-Through Shares Of Upton Resources Inc. AUGUST 6, 1998 TORONTO, ONTARIO--John Driscoll, President of NCE Resources Group, announced today that NCE Flow-Through (98) Limited Partnership has made a flow-through investment by purchasing 500,000 flow-through shares of Upton Resources Inc.("Upton") for a total investment of $1,575,000. NCE FLOW-THROUGH (98) LIMITED PARTNERSHIP: The Partnership has been organized to invest in flow-through shares of public resource companies with the objective of achieving capital appreciation for the Limited Partners. The Partnership was formed to invest primarily in companies that are involved in oil and gas exploration, development and/or production and, to a lesser extent, companies involved in mineral exploration, development and/or production. The acquisition of flow-through shares of Upton is the first investment by NCE Flow-Through (98) Limited Partnership. NCE RESOURCES GROUP: The Partnership's General Partner is a member of the NCE Resources Group, which was formed in 1984 as an oil and gas investment management organization. NCE provides a full range of technical, operational, administrative and investor services.

To: SofaSpud who wrote (12022)	8/6/1998 8:47:00 PM
From: Herb Duncan	Respond to of 15196

PIPELINES / Westcoast Energy Signs Major Natural Gas Processing MOU with AEC TSE, VSE, ME SYMBOL: W NYSE SYMBOL: WE AUGUST 6, 1998 CALGARY, ALBERTA--Westcoast Energy Field Services Division (Westcoast) announced today it has completed a Memorandum of Understanding (MOU) with Alberta Energy Company (AEC) for four years of firm service gas processing at Westcoast's Fort Nelson, British Columbia facility. AEC will deliver the natural gas from its Maxhamish field in northeast British Columbia. Westcoast will begin processing and transportation services in April 1999. The AEC facilities have a design capacity of 70 million cubic feet of gas per day. Under the MOU, AEC will supply up to 300 billion cubic feet of gas in the next 15 year period. "The MOU is a clear demonstration of Westcoast's competitiveness in regards to gas processing and transportation in northeast British Columbia and our ability to assist producers in maximizing the potential of this important new area of the Western Canada Sedimentary Basin," said Irv Koop, President, Westcoast Pipeline and Field Services. "Westcoast is committed to enhancing the performance of its processing facilities and to take a leadership role in this area of energy services." The area where Maxhamish is located, approximately 150 kilometres from Fort Nelson is estimated to contain natural gas reserves of approximately one trillion cubic feet. Westcoast's Fort Nelson facility has a rated capacity of 700 million cubic feet per day. Westcoast Energy's Pipeline Division is a wholly-owned subsidiary of Westcoast Energy Inc. Westcoast Energy Inc. (TSE: W; NYSE: WE) headquartered in Vancouver, British Columbia, is a leading North American energy company with assets of $10 billion. The Company's interests include an integrated natural gas gathering, processing and transmission system, natural gas storage facilities and gas distribution, power generation, and international energy businesses as well as financial, information and energy services businesses.

To: SofaSpud who wrote (12022)	8/6/1998 9:02:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Peak Energy Services Ltd. Closes Acquisition of the Assets of Lorchem Industries Ltd. TSE SYMBOL: PES AUGUST 6, 1998 CALGARY, ALBERTA--Peak Energy Services Ltd. ("Peak") is pleased to announce that it has completed its previously announced acquisition of the assets and business of Lorchem Industries Ltd. ("Lorchem") of Devon, Alberta. The purchase price for Lorchem totals $8,580,777 cash. The acquisition was financed with existing credit facilities. Lorchem provides specialized chemical hauling for use in production related services to the oil and gas industry. Lorchem has an extensive fleet of hot oilers, tank, vacuum, and pressure trucks strategically located in Devon, Alberta and Ft. McMurray, Alberta. The company has long-term contracts with its significant customers. The Lorchem acquisition further expands Peaks existing production related services division providing a geographic presence in north and central Alberta to compliment our Tankmaster operation in southern Alberta. Through this acquisition, Peak will continue to establish itself as the dominant provider of ancillary services to the oil and gas industry. Peak Energy Services Ltd. is a diversified energy services company providing oilfield rental equipment and related services to the petroleum industry in Western Canada. Peaks' shares are listed on the Toronto Stock Exchange under the symbol "PES".

To: SofaSpud who wrote (12022)	8/6/1998 9:06:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / AltaQuest Energy Corporation Expands Interests in the United Kingdom and Announces Further Drilling Success ASE SYMBOL: AQF AUGUST 6, 1998 AltaQuest Energy Corporation Expands Interests in the United Kingdom and Announces Further Drilling Success CALGARY, ALBERTA--ALTAQUEST ENERGY CORPORATION (Symbol - AQF) has expanded its interest in the United Kingdom Fiskerton block from 24.5 percent to 32.0 percent acquiring 7.5 percent from Reserve Royalty Corporation. The total consideration paid was $1.0 million cash plus an 8 percent non-convertible gross overriding royalty. This acquisition includes 7.5 percent interest in 300 barrels of oil per day (bopd), 1,700,000 barrels of oil equivalent (BOE) of proved and probable reserves, and approximately 140,000 gross acres of land with three drillable prospects. A pipeline is scheduled for construction this summer that will enable the existing production to increase to 600 - 700 bopd. This transaction was effective June 1, 1998 and closed July 7, 1998. AltaQuest and its partners have recently completed drilling two appraisal wells (FA2 and FA3) on the Fiskerton structure at AltaQuest's new 32.0 percent interest. Both wells were cased as potential oil wells with FA2 encountering 36 feet and FA3 a total of 56 feet of Basal Sandstone. Both wells will be completed immediately and, along with the existing FA1 well and construction of the pipeline, the Corporation's production levels are expected to reach 350 bopd from the pool. Furthermore, on the Fiskerton block a separate structure has been identified via 3D seismic west of the discovery pool that will be tested this month by drilling Fiskerton FAW-1. AltaQuest's interest in this exploration well is 32.0 percent. On the Newton discovery (50.0 percent APO W.I.), AltaQuest is currently production testing the third oil zone (Crawshaw Sand) encountered by this discovery well. It is presently flowing 100 barrels of fluid per day (bfpd) with a 70 percent oil cut on a 8/64" choke. Based on the existing pressure drawdown on the well, this zone has a production capability of 250 - 300 bfpd with a 70 percent oil cut. The two remaining zones, the Kinderscout and Longshaw, have both been completed and production tested with capabilities of 100 bfpd at a 50 percent oil cut and 125 bfpd at a 100 percent oil cut respectively. The 30 square kilometre 3-D seismic program has been shot and processed. AltaQuest and its partners anticipate drilling two wells as a result of this program this fall. Two of the Corporation's additional prospects located at East Markham, Darlton, Eaton or West Bothamsall are scheduled to be drilled in the fourth quarter of 1998, depending on surface access and rig availability. AltaQuest is a publicly traded company listed on The Alberta Stock Exchange.