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

To: Kerm Yerman who wrote (12764)	10/9/1998 12:17:00 PM
From: SofaSpud	Respond to of 15196

CORP. / Berkley updates financing, drilling Berkley Petroleum Updates E&P Activities, Acquisitions and Private Placement of Flow-Through Common Shares CALGARY, ALBERTA--Berkley Petroleum Corp. is pleased to announce that 1998 exploration successes in the Alberta Foothills, in northeast British Columbia and in the North West Territories will lead to an expanded exploration and production budget in 1999. The Company plans to spend at least $185 million on existing and new E&P projects prior to the end of 1999. In the Alberta Foothills, natural gas development projects are planned for 1999 at Turner Valley, Redcap and Voyager following significant discoveries in these areas in 1998. The Company expects to have new gas production on stream from at least four new Foothills properties during 1999. Several new Foothills exploration projects will also be tested as part of the expanded program. In northeast British Columbia the company plans a large development of the Halfway River-Blueberry West multi-objective complex with a target 1999 exit volume of 5000 boepd. The Company has made a significant deep oil discovery at Halfway River. The 4-1-87-25W6 well flowed 48 API oil at rates of 1810 bopd at a flowing pressure of 785 psi on production test. Berkley has a 100 percent interest in the well and adjoining lands. At Adsett initial optimization of the gas complex in August increased net sales gas production to 17.0 MMCFPD. A large E&P program is planned in 1999 for this core gas producing area to bring 1999 exit gas production from the area to 25.0 MMCFPD. New discoveries at Wilder, Fireweed and Helmet will also be followed up in 1999. In the North West Territories, the Company plans to participate in at least ten drilling locations this winter in the Bovie, Arrowhead, Liard, Netla, and other new gas play areas. The program will assess discoveries made at Bovie and Arrowhead as well as test an additional eight exploration prospects. The Company has continued to pursue acquisitions that complement its existing E&P activities. Berkley has entered into an agreement with a major oil and gas company to acquire a package of producing, shut-in and undeveloped properties in northeast British Columbia and northwest Alberta. Current production from the producing properties is approximately 3200 boepd (16.0 MMCFPD, 1600 boepd), and current established reserves are estimated at 13.2 million barrels. Tie-ins of existing shut-in new gas pools included with the acquisition will add an additional 20 MMCFPD by mid-1999. Also included in the acquisition is 350,000 net acres of undeveloped land in Berkley's existing E&P area. Closing is expected in late November 1998. The Company also announces its intention to issue, subject to regulatory approval, up to 3,000,000 flow-through common shares on a private placement basis at a price of $10.25 per share. Up to 1.5 million of the flow-through shares will be issued to management, directors, and employees, and the balance will be placed on a "best efforts" basis. Berkley will use the net proceeds of this offering to fund exploration expenditures and Berkley will renounce to subscribers Canadian Exploration expense equal to the subscription amount for the flow-through common shares. Berkley Petroleum Corp. is a Canadian company engaged in exploration, development and production of natural gas and crude oil. Berkley's common shares are listed on the Toronto and Alberta stock exchanges under the trading symbol "BKP." Berkley Petroleum's News Releases for the past 14 months can be accessed electronically through the Canadian Corporate News website at cdn-news.com -30- FOR FURTHER INFORMATION PLEASE CONTACT: Berkley Petroleum Corp. Michael L. Rose President & CEO (403) 571-3600 berkleypete.com