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

To: Kerm Yerman who wrote (12379)	9/19/1998 9:01:00 AM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / First Star Releases Information on Strachan Prospect ASE SYMBOL: FST SEPTEMBER 18, 1998 CALGARY, ALBERTA--First Star Energy Ltd. ("First Star") and its partners are pleased to announce that they have made the first significant Swan Hills/Beaverhill Lake natural gas discovery between the Caroline and Blackstone-Hanlan area in the foothills of Alberta. The Strachan 2-22-38-09W5 well (formerly 3-22)(First Star 20 percent BPO, 25 percent APO) encountered 14 meters of porous dolomitized reef in the Swan Hills formation during drilling operations in April. During the summer months the well was acid stimulated and initial production testing of the Swan Hills has now been completed. During the production test the well flowed at raw gas rates up to 10 Mmcfd with negligible water production. The final test rate was 4.8 Mmcfd on a 5/16" choke, and a wellhead flowing pressure of 2375 psig. Survey and permitting for the tie-in of the well to the Strachan gas plant will begin shortly, with an expected onstream date of January 1, 1999. First Star previously reported (April 17, 1998), that this well did not encounter the Leduc D-3 formation which was the primary target at this location. However, the well has encountered a new natural gas reservoir in the Swan Hills Formation. The revised geological and geophysical interpretation for the prospect area, which takes into account information from the well, suggests that the Swan Hills formation was not drilled in the optimal position. Whereas the well location was originally moved to match the 3-D seismic and optimize the expected structure (Leduc D-3), it was not the optimum location for a Swan Hills well. Therefore, the option blocks originally designated in the farmout agreement relative to the D-3 target do not necessarily correlate to the Swan Hills discovery. The farmin partners have elected not to drill the first option well on the option block specified, although it is expected that the first development well for the Swan Hills will be drilled in early 1999. Further drilling, both development and exploration, will be required to determine the full extent of the discovery. Based on the penetration rates, gas detector reading and well logs, a number of shallower zones, including the Mississippian and Lower Mannville formations, appear to contain hydrocarbons in the 2-22 well. No tests of these potential zones were carried out during the drilling operations (in order to protect the integrity of the wellbore). A shallow well, to access these reserves, is expected to be drilled in late 1998 or early 1999. First Star's original acreage block, prior to the drilling of the discovery well, consisted of 16.5 sections of P&NG rights, (10,560 gross acres). Including the September 16, 1998 sale, First Star now has rights varying from 25 percent to 100 percent in a total of 34 sections (21,760 gross acres) or 7430 net acres for an average working interest of 34.2 percent on this play. First Star is listed on the Alberta Stock Exchange with the symbol "FST".

To: Kerm Yerman who wrote (12379)	9/19/1998 9:08:00 AM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Loon Announces Gas Discovery ASE SYMBOL: LEY SEPTEMBER 18, 1998 CALGARY, ALBERTA--Loon Energy Inc. ("Loon") announces that the Company has participated in a significant Swan Hills/Beaverhill Lake natural gas discovery in the foothills of Alberta. The partners in the well have elected to release certain information on the status of the Strachan 2-22-38-09 W5M well (Loon 10 percent BPO, 5 percent APO) following the completion of production testing and a series of Crown P&NG sales in the immediate area. The 2-22 (formerly 3-22) encountered 14 metres of porous dolomitized reef during drilling operations in late April. During the summer months the well was acid stimulated and initial production testing of the Swan Hills has now been completed. During the production test the well flowed at raw gas flow rates up to 10 MMcfd. The final tested rate was 4.8 MMcfd on a 5/16" choke with a wellhead flowing pressure of 2375 psig. Surveying and permitting for the tie-in of the well to the Strachan gas plant will begin shortly with an expected onstream date of January 1, 1999. Loon reported previously (April 17, 1998) that the well did not encounter the Leduc (D-3) formation which had been the primary target at this location. However, the well has encountered a new natural gas reservoir in the Swan Hills formation. The geophysical and geological interpretation for the prospect area, which takes into account information from the well, suggests that the Swan Hills was not drilled in the optimum location. The first development well for the Swan Hills zone is expected to be drilled during the first part of 1999. Based upon penetration rates, gas detector readings and wireline logs, a number of shallow zones (Mississippian, Lower Mannville) appear to contain hydrocarbons in the 2-22 well. Unfortunately, no tests of these potential zones were possible in the existing well due to wellbore problems. A shallow well, to access these reserves, is expected to be drilled in late 1998 or early 1999. In addition to its interest in the 2-22 well, Loon earned a 5 percent working interest in 3 additional sections. With recent land purchases in the area, Loon now owns an average 5.5 percent working interest in a total of 12.5 sections (8,000 gross, 438 net acres). Loon also has a 5 percent interest in an area of mutual interest ("AMI") covering 80 sections in the area.

To: Kerm Yerman who wrote (12379)	9/19/1998 9:13:00 AM
From: Herb Duncan	Respond to of 15196

FINANCE / Talisman Advances Additional Funds To Arakis NASDAQ SYMBOL: AKSEF SEPTEMBER 18, 1998 CALGARY, ALBERTA--Talisman Energy Inc. announced today that it has advanced US$24,735,577 to Arakis Energy Corporation under its Credit Agreement with Arakis dated August 17, 1998. A total of US$46,564,399 has been advanced to date for the purpose of satisfying a funding obligation of State Petroleum Corporation, Arakis' wholly-owned subsidiary, in respect of its oil exploration and development project in Sudan. A Special Meeting of Securityholders of Arakis will be held on October 7, 1998 to vote on Talisman's proposed acquisition of Arakis. A Notice of Special Meeting and Notice of Petition and Management Information Circular concerning an arrangement between Talisman and Arakis was mailed to securityholders of Arakis on September 3, 1998. Talisman Energy Inc. is a Canadian-based, international upstream oil and gas producer with operations in Canada, the North Sea and Indonesia. The Company is also conducting exploration in Algeria and Trinidad. Talisman's shares are listed on the Toronto, Montreal and Vancouver Stock Exchanges in Canada and the New York Stock Exchange in the United States under the symbol TLM. Arakis Energy Corporation is a Canadian-based, international oil company with a 25 percent interest in a Sudan concession through its participation in the Sudan Project Consortium. Arakis shares are listed for trading on the NASDAQ exchange under the symbol AKSEF.