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

To: Herb Duncan who wrote (12387)	9/22/1998 10:43:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Wenzel Downhole Announces Excellent Operating Results WENZEL DOWNHOLE TOOLS LTD. ASE SYMBOL: WZL SEPTEMBER 22, 1998 CALGARY, ALBERTA--The management of Wenzel Downhole Tools Ltd. is pleased to announce excellent operating results for the year ended May 31, 1998. The Corporation enjoyed another year of significant growth. During the year, revenues, net income and net assets doubled. The growth came from a significant increase in our foreign business and an increased share of the Canadian market place. This growth should continue in the future due to innovative marketing in existing markets, new markets being developed, new products that are coming on stream and a continued research and development effort. The Corporation's gross margin percentage remained at 53 percent while the general and administration expenses as a percentage of sales fell to 10 percent from 14 percent. A major reason for the reduced G&A expense ratio is that management continues to draw conservative salary levels. The management group owns a significant percentage (61 percent) of the Corporation's outstanding shares; therefore management and the shareholders have the same goals. At the date of this release, the Corporation's Edmonton manufacturing facility is extremely busy. The reason for this is the introduction of new products that reduce the cost and increase the efficiency of drilling. Actual results for the year ended May 31, 1998 were: 1998 1997 Revenue $12,944,385 $ 6,116,971 Direct Costs 6,020,111 2,861,937 ----------- ----------- Gross Profit $ 6,924,274 $ 3,255,034 Net After Tax earnings $ 3,146,393 $ 1,577,090 Basic Earnings Per Share $ 0.15 $ 0.09 Fully Diluted Earnings Per Share $ 0.14 $ 0.09 Total Assets $22,257,565 $10,343,828 Management of the Corporation is looking forward to another year of excellent growth. The opportunities in the existing market place are many and very exciting. The reader is invited to visit the Corporation's web side at www.downhole.com for a tour of our manufacturing facilities, historical financial data and product brochures.

To: Herb Duncan who wrote (12387)	9/22/1998 10:46:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / APF ENERGY TRUST / APF Announces Monthly Distribution of $0.12; Interest Rate Hedge Also Announced TSE SYMBOL: AY.UN SEPTEMBER 22, 1998 CALGARY, ALBERTA--APF Energy Trust announced that the cash distribution for the production month of August 1998 will be $0.120 per unit. The distribution will be made on October 15, 1998 to unitholders of record on September 30, 1998. This distribution comprises the basic $0.120 payment and continues APF's record of paying $0.120 each month with an additional payment every third month. With this distribution, unitholders will have received $1.545 per unit since January 1, 1998, with three more distributions to be announced by the end of the year. In other news, APF announced that it had locked in $14 million of its long term debt at 5.65 percent until August 19, 1999.

To: Herb Duncan who wrote (12387)	9/22/1998 10:50:00 PM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

FINANCING / Beau Canada Exploration Sells Flow Through Shares BEAU CANADA EXPLORATION LTD. TSE, ME SYMBOL: BAU SEPTEMBER 21, 1998 CALGARY, ALBERTA--Beau Canada Exploration Ltd. (BAU) announces as of September 17, 1998 it has sold 719,976 flow-through common shares at $1.67 per share in a private placement for proceeds of $1.2 million. Beau Canada Exploration Ltd. is a Canadian oil and gas exploration and development company based in Calgary. Beau Canada's common shares are listed on the Toronto Stock Exchange and the Montreal Exchange under the symbol "BAU".

To: Herb Duncan who wrote (12387)	9/22/1998 10:54:00 PM
From: Kerm Yerman	Read Replies (6) \| Respond to of 15196

SERVICE SECTOR / Hartland Pipeline Services Announces the Purchase of BFC Pipelines & Completion of the $110 Million Debt Facility HARTLAND PIPELINE SERVICES LTD. TSE SYMBOL: HAR SEPTEMBER 21, 1998 CALGARY, ALBERTA-- THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH ANY SERVICES HAVING U.S. PARTICIPATION. Brian J. Murray, CEO and Mark A. Breakell, CFO of Hartland Pipeline Services Ltd. are pleased to announce that Hartland has completed the purchase of BFC Pipelines and has completed a $110 million financing underwritten by Bankers Trust and arranged by BT Alex. Brown Canada Incorporated. The details of the $110 million secured facility are as follows: (i)$25 million Operating Line / Revolving Credit, 5-year term; (ii)$35 million, 5-year term loan with annual repayments of $7 million; (iii)$50 million, 6-year term loan with annual repayments of $0.5 million and a bullet payment of $47 million in year 6. The proceeds from the long-term portion of the facility will be used as follows: (i)Completion of the acquisition of the BFC Pipelines division (formerly known as Banister / Majestic Pipelines) from BFC Construction Corporation for $67.5 million - $50 million in cash, $10 million in Hartland common shares, and a $7.5 million Convertible Debenture with a 5-year maturity and a 4.5 percent coupon; (ii)Consolidate and repay existing long-term debt of $19.8 million; (iii)The balance will be used to supplement working capital. The effective date of the BFC Pipeline acquisition is May 1, 1998. The BFC Pipeline acquisition gives Hartland revenues and additional contract backlog totalling approximately $419 million over the next two years. Hartland's total estimated small, medium and large bore backlog over the next two years is in excess of $530 million. Mr. Breakell reports, "This financing allows Hartland to meet its current operating objectives with flexibility to pursue additional synergistic acquisition opportunities". Hartland serves a broad client base of senior Canadian oil and natural gas producers and large pipeline companies. Hartland's vertically integrated operations include fabrication, installation and construction of gathering systems and small to large bore oil and gas pipelines, environmental reclamation services and horizontal drilling. Hartland's strategic objective is to become a full service provider of pipeline construction solutions to the North American gathering and pipeline construction markets.

To: Herb Duncan who wrote (12387)	9/23/1998 12:42:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Pioneer Natural Resources Announces Successful Testing of Second Appraisal Well In Republic of South Africa PIONEER NATURAL RESOURCES COMPANY TSE, NYSE SYMBOL: PXD SEPTEMBER 21, 1998 Pioneer Announces Successful Testing of Second Appraisal Well In Republic of South Africa DALLAS, TEXAS--Pioneer Natural Resources Company ("Pioneer") announced today the successful testing of its second appraisal well ("E-BD4") in Tract E-BD of Block 9 offshore the south coast of the Republic of South Africa. This well, which is operated by SOEKOR E and P (PTY) LTD ("SOEKOR"), the South African national oil company, encountered a gross pay interval of approximately 95 feet at a depth of 8,552 feet. Only the uppermost 30 feet of this interval was perforated and tested at a rate of 4,534 barrels of 39 degree API gravity oil per day (BOPD) and 3.1 million cubic feet of gas per day (MMCFPD) through a 3/4-inch choke during an extended 36-hour test. The well was drilled in a water depth of about 328 feet and will be suspended pending field development. "Within the short space of a year since our first visit to South Africa, Pioneer has established a new international core area, creating significant value. Commercial production is expected to begin by mid-2000 allowing us to realize this value," stated Scott D. Sheffield, President and CEO. "With over 13 million acres to explore and develop, we believe South Africa holds many more value-creating opportunities for Pioneer. We look forward to a long and mutually rewarding collaboration with the people and Republic of South Africa." As previously announced, Pioneer's first well in South Africa, E-BD3, tested at a rate of 5,980 BOPD and 3.6 MMCFPD. The E-BD1 discovery well tested at 8,525 BOPD and 5.2 MMCFPD. The differences in test rates between these wells are attributed to the varying thickness of tested intervals and varying choke sizes. Current plans call for a joint development of the E-BD and E-CE discoveries using a floating production, storage, and offloading facility (FPSO) with the start of oil production expected during mid-2000. The E-CE portion of the field complex, which consists primarily of a deeper sandstone than at E-BD, has been evaluated with a discovery well (E-CE1) that tested at a rate of 6,021 BOPD and 7.5 MMCFPD from an oil-bearing zone, and 10.5 MMCFPD and 1,466 barrels of liquids and condensate per day from the directly overlying gas cap. The first appraisal well, E-CE2, encountered a thin oil-bearing interval and was not tested. The second appraisal well, E-CE3, tested the gas cap at a rate of 4,271 barrels of liquids and condensate per day and 25.3 MMCFPD. Preliminary estimates of total recoverable oil from the combined E-BD/E-CE accumulations are 25 to 35 million barrels with Pioneer's expected share between 7.5 and 12.5 million barrels. Pioneer's interest is 35 percent in E-BD and 25 percent in E-CE. The E-BD/E-CE oil accumulations are about 12 miles from the Oribi Field (SOEKOR-operated in central Block 9) with which it shares a number of significant geologic and reservoir similarities. The recoverable oil reserves from the Oribi Field are estimated to be 20 to 25 million barrels, and the field has produced at rates of up to 25,000 BOPD from two producing wells (with one injector) since May 1997. The E-BD/E-CE oil accumulations are located within an area operated by SOEKOR that covers about 0.5 million acres in Block 9. This acreage contains a number of other unappraised or undeveloped oil and gas discoveries as well as significant exploration opportunities. Pioneer will operate the F-Q and E-P Tracts in Block 9 as well as Block 7,10-14B. These areas cover about 13 million acres and are largely characterized by trap types, source rocks, reservoirs and seals that are similar to those responsible for oil and gas production in Block 9. Headquartered in Dallas, Pioneer is one of the largest independent (non-integrated) exploration and production oil and gas companies in North America, with major operations in the United States, Canada, Argentina and South Africa.

To: Herb Duncan who wrote (12387)	9/23/1998 12:46:00 AM
From: Kerm Yerman	Respond to of 15196

MERGERS-ACQUISITIONS / Ohio Resources to Make Bid For Catalina Energy Corporation OHIO RESOURCES CORPORATION VSE SYMBOL: OHO SEPTEMBER 21, 1998 Ohio to Make Bid For Catalina Energy Corporation CALGARY, ALBERTA--Ohio Resources Corporation ("Ohio") (VSE-OHO) is pleased to announce that it has entered into an acquisition agreement with Catalina Energy Corporation ("Catalina") pursuant to which Ohio has agreed to make a formal take-over bid for all of the issued and outstanding securities of Catalina by no later than October 9, 1998. The bid will remain open for at least 21 days. Ohio's obligation is subject to a number of conditions, including acceptance by the holders of at last 66 2/3 percent of each outstanding class of Catalina securities. Ohio has entered into lock-up agreements with security holders of Catalina representing 41.9 percent of the outstanding common shares and 100 percent of the outstanding special warrants. Ohio has agreed to issued .58 of an Ohio share, warrant or option for each corresponding outstanding security of Catalina. This will result in the issuance of approximately 4,857,500 Ohio common shares and the reservation of 2,063,350 Ohio common shares for issuance on exercise of warrants and options. There will be 1,657,350 warrants outstanding which are exerciseable at $1.03 expiring on December 31, 1998 and June 30, 1999. In addition, 406,000 stock options at average prices of $0.55 expiring not later than October 31, 2002 will be granted in exchange for outstanding Catalina options. Based on the closing price of Ohio's common shares for the week of September 18, 1998 the value of the transaction is approximately $3.9 million. This takeover is subject to regulatory and Ohio shareholder approval at a meeting set for October 27, 1998. Subsequent to the transaction the Catalina shareholders would hold approximately 27.3 percent of the then outstanding 17,816,581 Ohio common shares. The proposed transaction provides an excellent business, financial and people fit for the new company. Ohio has established Turin, Alberta as a new core area. Recent drilling success on the joint lands with Catalina have added significant value. Catalina is Ohio's 50 percent partner and operator of the Turin project. In addition to the gas production shared with Ohio, Catalina has significant oil reserves, production and facilities in the area. The combined entity has production of over 700 boe/d with a further 2 recently drilled wells (100 percent) to the combined entity currently under evaluation. Independent reserve reports indicate approximately 1,940 mboe of proved plus probable reserves to the combined entity. Catalina currently has net working capital of $600,000 and no debt thus allowing the Ohio shareholder to enjoy greater critical mass, stronger cash flow, increased borrowing capacity and a heightened recognition in the financial community. Catalina's management which will join Ohio is comprised of Wade McGowan Catalina's President and CEO and John Salopek Vice President, Exploration. Both individuals have extensive experience in exploration and production operations. At the Ohio shareholders meeting Ohio shareholders will also be asked to approve a change of name for the corporation to Causeway Energy Corporation.

To: Herb Duncan who wrote (12387)	9/23/1998 12:50:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / First Premium Oil & Gas Income Trust Income Distribution FIRST PREMIUM OIL & GAS INCOME TRUST TSE, ME SYMBOL: FPG.UN SEPTEMBER 21, 1998 TORONTO, ONTARIO--First Premium Oil & Gas Income Trust Declares Income Distribution Toronto, September 21, 1998: First Premium Oil & Gas Income Trust has declared a regular quarterly income distribution of C$0.1875 per Unit payable September 30, 1998 to holders of record on such date. First Premium Oil & Gas Income Trust's investment objectives are to provide Unitholders with a stable stream of quarterly distributions of at least $ 0.1875 per Unit. The Trust intends to achieve its investment objectives by investing in a diversified portfolio consisting primarily of common shares issued by corporations that are included in the TSE 300 Oil & Gas Sub-Index and up to 20 percent of the cost amount of its assets in common shares issued by corporations that are included in the Standard & Poor's 500 Oil & Gas Sub-Index. In either case, in order to generate returns above the dividend income generated by the portfolio, the Trust will write covered call options in respect of all or part of the securities in the portfolio. The Trust's investment portfolio is managed by it's investment manager, Mulvihill Capital Management. Trust Units are listed on The Toronto Stock Exchange and The Montreal Exchange under the symbol FPG.un. Distribution Details: - Distribution per Unit: $ 0.1875 - Payable Date: September 30, 1998 - Record Date: September 30, 1998 - Ex-Dividend Date: September 28, 1998

To: Herb Duncan who wrote (12387)	9/23/1998 1:23:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Oil Industry Sees Silver Lining Despite weak demand, cuts to output may raise prices BY CLAUDIA CATTANEO Calgary Bureau Chief The Financial Post There are promising signs the oil price slump disabling Canada's oil and gas industry is coming to an end, say industry analysts. But a recovery from the longest downturn since the 1973 oil embargo is also expected to take longer and be harder than in the past, likely resulting in another winter of weaker industry activity. Oil prices have bounced back in recent weeks above US$15, climbing from a low of about US$13 in August. Yesterday, West Texas intermediate crude closed at US$15.67 a barrel on the New York Mercantile Exchange, up US18›. The latest decline - one of four since 1985 - has lasted 21 months, with a 48% drop from the peak monthly average price of US$25.18 in January 1997 to an August monthly low of US$13.38. "The probability is that the worst is over, because of a combination of the time we have been in decline, the Organization for Petroleum Exporting Countries' production cuts and the fact we are moving to a seasonally strong period," said Wilf Gobert, managing director of research at Peters & Co. in Calgary. The good news is the OPEC and non-OPEC cuts that were agreed to earlier in the year are holding and compliance is strong - more than 80%, said Ed Peplinski, senior investment analyst with ARC Financial Corp. in Calgary. Cuts to world oil production, which was 74 million barrels a day in August, include: 2.15 million b/d by OPEC members, out of 2.6 million b/d pledged in three rounds earlier this year. OPEC produces 27.3 million b/d. 85,000 b/d, mostly higher-cost heavy oil from Canadian producers, of total production of 1.9 million b/d. 630,000 b/d by non-OPEC members China, Mexico, Norway, Russia, Egypt, Yemen and Oman. Standing in the way of a quick comeback is world oil demand, which seems more uncertain than it has ever been, said Gobert. During past price declines, recovery above US$15 occurred within four months or less from the low and was triggered by production cuts, he said. This time, that's failed to work. Weak demand is likely to persist, with Japan struggling with recession, hints of recession in the Americas, and Russia and Asia in turmoil, Gobert said. To compound the industry's problems, the length of the latest decline has reduced cash flows to such an extent the sector won't be able to take full advantage of higher natural gas demand. Drilling activity in Western Canada has declined to some of the lowest levels this decade. Only 193 drilling rigs were active in the week ended Sept. 22, out of 578 in the drilling fleet, the Canadian Association of Oilwell Drilling Contractors said yesterday. The recent average was 300 active rigs. At this time last year, about 430 rigs were in operation. "Companies don't want to go out on a limb with aggressive spending, not knowing whether or how much it will recover, therefore it's going to cause a lower level of activity," Gobert said. The group now expects fewer than 11,000 wells will be drilled this year, down from 16,400 in 1997. "There is no question companies will need to see some history of good oil pricing in the rear-view mirror before they can load up their fuel tanks with cash flow to drill prospects. There is always a lag time," said Bob Geddes, general manager of Ensign Drilling Inc.