Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerm Yerman who wrote (12454)	9/24/1998 6:47:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Way Clear For Alliance To Build Gas Line In U.S. CALGARY, Sept 23 (Reuters) - Backers of the proposed Alliance natural gas pipeline to Chicago from northern Canada said on Wednesday they accepted the U.S. energy regulator's terms for building it, clearing the way for construction to begin in the United States. The C$3.7-billion pipeline, however, still has one major hurdle to clear before it can be built -- approval from Canada's National Energy Board for construction north of the international border. The earliest a decision from the NEB could be issued would be early November. Alliance, first proposed by a spate of Canadian gas producers and now owned by seven pipeline companies, said it accepted the Certificate of Public Convenience and Necessity offered last week by the U.S. Federal Energy Regulatory Commission. "At its regularly scheduled meeting today, the Alliance board of directors strongly endorsed accepting the certificate and moving forward aggressively with our construction plans," Alliance Chief Executive Dennis Cornelson said in a statement. "All our partners remain fully committed to the Alliance project schedule which will see western Canadian natural gas flowing through our system at the beginning of the fourth quarter of 2000 as previously announced." If approved by the NEB, Alliance would ship 1.3 billion cubic feet of Canadian gas a day to the rich Chicago market from northeast British Columbia in competition with major pipelines either wholly or partially owned by TransCanada PipeLines Ltd. in Alberta, Saskatchewan, Manitoba and the northern U.S. states. Alliance was the subject of a heated and epic Canadian public hearing for the first five months of this year. Tensions eased in April after TransCanada and Canadian gas producers signed an accord aimed at allowing pipeline competition within the industry in exchange for producers pulling their opposition to the now-completed TransCanada acquisition of NOVA Corp.'s pipeline division. Cornelson said an autumn approval from the NEB would allow construction of the 3,000 km pipeline to start in 1999 as planned. In the Canadian approval process, once the NEB completes its report and presents it to Canada's environment and energy ministers, 30 days is allotted for public comment. After that, the ministers can either recommend the board issue an approval or send it back to the drawing board. The board is expected to complete and send its report in October, NEB spokesman Ross Hicks said. "We're dealing with it as expeditiously as we can given the constraints we have to live under," Hicks said. Alliance partners include IPL Energy Inc. with 21.4 percent, Fort Chicago Energy Partners LP with 26 percent, Coastal Corp. with 14.4 percent, Westcoast Energy Inc. with 14.5 percent, Duke Energy Corp. with 9.8 percent, Unocal Corp. with 9.1 percent and Williams Cos. Inc. with 4.8 percent.

To: Kerm Yerman who wrote (12454)	9/24/1998 6:50:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Sour Gas Leak Causes Problems In Alberta CALGARY, Sept 23 (Reuters) - Husky Oil Ltd. said crews have stopped a dangerous leak of hydrogen sulphide-laced natural gas at a drilling site in western Alberta on Wednesday, but said the situation remained serious. There were no injuries, but an estimated 30,000 cubic feet of "sour gas""was released during the leak from the drilling site that lasted about two hours, the Calgary-based company said in a prepared statement. "Although the gas flow has been stopped, the situation remains serious. Husky personnel are taking further action to fully secure the well. Until this situation is under control, the public is advised to stay away from the affected area," Husky officials said. The cause of the leak was not known. The drilling site was in the Blacktone area about 30 miles (50 km) east of Nordegg, a small community about 120 miles (200 km) northwest of Calgary. Breathing "sour gas""can be fatal if sufficient levels of hydrogen sulphide are present. The gas released in this incident was estimated to contain 18 percent hydrogen sulphide," the company said. Roadblocks were established to keep people at least six miles (10 km) from the leak site. The nearest residence was believed to be 12 miles (20 km) away and helicopters were being used to warn any campers who might in the area. Husky is 49 percent owned by Hutchison Whampoa Ltd. , a firm controlled by Hong Kong billionaire Li Ka-Shing. Li and his family own another 46 percent of Husky directly, while Canadian Imperial Bank of Commerce owns the remaining 5 percent.

To: Kerm Yerman who wrote (12454)	9/24/1998 6:53:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Energy Service Firms Start Cutting Drilling companies across the oilpatch pare staff as a slow winter approaches By IAN McKINNON Calgary Bureau The Financial Post Oil prices are rising, but jobs and executive wages at Canadian energy service firms are falling, as drilling this winter is not expected to match the high levels seen in recent years. Nowsco Well Service Ltd. has laid off 110 people since June, with most of the cuts coming in the last month, said Blair Albers, regional manager for Canada. Both field and head office workers were affected by the cuts, which were part of a global initiative by Houston-based BJ Services Co., Nowsco's owner since 1996. BJ is trimming more than 800 jobs, about 9% of its payroll, as it struggles to trim costs and improve earnings. Analysts said other Calgary-based firms that have dumped workers recently include CE Franklin Ltd., Fracmaster Ltd., Precision Drilling Corp., Prudential Steel Ltd., Ryan Energy Technologies Inc. and Trican Well Service Ltd. One source said Fracmaster let go 250 employees this week. Company officials could not be reached for comment. The 21-month slump in oil prices has drastically reduced producers' cash flow. As a result the service sector has seen increased competition for jobs, along with layoffs and wage rollbacks. Nowsco's senior managers saw their pay reduced by 3% to 7%, depending on position and salary, Albers said. This is the first time since 1993 that Nowsco has pared staff. "I think it's a reality of the business today," he said. "The commodity price is subject to much greater volatility than in the past and we, as an industry, have to be prepared to respond." The job cuts are just part of managing the peaks and troughs of a cyclical business, observers said. The moves should help companies reduce costs, said Janet Spensley, service firm analyst with FirstEnergy Capital Corp. in Calgary. "It's a good thing in the long term - 1997 was such a boom time that they got a little complacent about running tight ships." Less-experienced workers are being let go as the companies try to keep skilled veterans around, Spensley said.

To: Kerm Yerman who wrote (12454)	9/24/1998 6:57:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Mobil 0il Canada To Spend $4B On East Coast By CLAUDIA CATTANEO Calgary Bureau The Financial Post Mobil Oil Canada, a division of Fairfax, Va.-based Mobil Corp., said yesterday it will spend $4 billion in the East Coast offshore oil and gas industry over the next five years. The spending will be spread among three major projects - Hibernia, Terra Nova and Sable Island - along with new exploration and potentially new development, said Ken Miller, senior vice-president for Eastern Canada. "The $4 billion is indicative that Mobil believes we can grow a core producing area for the corporation here," he said. Canada's East Coast is one of Mobil's top growth areas, the company said. Yesterday, Mobil opened offices for two new business units in St. John's and Halifax that will manage East Coast operations. The company would not provide a breakdown of spending for each project. Mobil Canada is the major owner, with a 33% interest, of the Hibernia oil development, which began producing last November. Daily production has reached 100,000 barrels a day and is expected to rise to 135,000 b/d early next year. Mobil also has a 22% interest in the Terra Nova oil project, expected to start producing in 2001, and is the major shareholder of the Sable Island natural gas project, expected to start producing in 2000. Last week, Mobil, as part of a consortium, won six exploration licences off Newfoundland, increasing its exploration permits in the area to 14. The company also holds interests in exploration permits off Nova Scotia covering 1.4 million hectares. Plans are under way to develop satellite fields as part of the Sable project, Miller said. While most of Mobil Canada's spending will be focused on the East Coast, its commitment to the rest of the country is not diminishing, Miller said. For example, the company will decide by the end of this year whether to invest $2.5 billion in a new oilsands mine and upgrader in northern Alberta. "In fact, it signifies a growing investment in Canada as a whole," Miller said.

To: Kerm Yerman who wrote (12454)	9/24/1998 7:01:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Alberta Energy's Bid For Amber Energy Gets A Boost From The Markets By CLAUDIA CATTANEO Calgary Bureau The Financial Post Canadian oil and gas stocks' advance yesterday could be bad news for takeover target Amber Energy Inc. Alberta Energy Co. Ltd., which made an unsolicited bid last week to take over Amber, was one of the top gainers in yesterday's rise. Its stock (AEC/TSE) closed at $35.80, up $1.45, closing in on its 12-month high of $36.50. AEC is offering $7 cash for Amber's stock, or 0.215 of an AEC share for every Amber share. At yesterday's closing price, the value of the share offer increases to $7.70 per Amber share. AEC has capped at three million the number of shares it will issue to Amber shareholders under the deal. The increase, if sustained through the bid period, helps AEC because it raises the bar for others planning a competing bid for Amber, said an investment banker working on AEC's side of the deal. AEC's $750-million unsolicited offer for Amber includes the assumption of $304 million of Amber's net debt. Amber has said the AEC offer is inadequate and has hired financial advisers to look for a better bid. Amber's stock (AMB/TSE) was down 15› yesterday, to close at $7.25. The TSE oil and gas index rose 145 points yesterday, to close at 5481. The rise was led by advances from senior and integrated oil and gas companies because of increasing market optimism that oil prices are past their bottom.