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

To: SofaSpud who wrote (12913)	10/21/1998 1:33:00 AM
From: Kerm Yerman	Read Replies (5) \| Respond to of 15196

ENERGY TRUSTS / Canadian Oil Sands Trust Third Quarter 1998 Report & Distribution CALGARY, Oct. 20 /CNW/ - Canadian Oil Sands Trust announced a third quarter distribution of $0.12 per unit, bringing the cumulative distributions for 1998 to $0.55 per unit. Chuck Shultz, Chairman of Canadian Oil Sands, summarized the quarter with the following comments: ''Canadian Oil Sands continues to make reasonable Cash Distributions in light of the weak oil prices of the third quarter as well as the unscheduled maintenance turnaround to one of Syncrude's cokers which reduced production to 140,000 barrels per day for 25 days during the quarter. Canadian Oil Sands maintains its strong balance sheet in the face of difficult market conditions.'' West Texas Intermediate crude oil prices averaged US$13.38 during August; oil prices have not traded this low since July of 1986 when the monthly average was US$11.49. The trading price of Trust Units also recovered during the quarter from a low of $15.00 in late August to $20.25 by quarter end. Distributable Income during the third quarter totalled $3.2 million ($0.12 per unit) compared to $11.5 million ($0.50 per unit) for the third quarter of 1997. The third quarter Distributable Income in 1998 includes a $5.5 million provision for the external financing of capital expenditures and a $2.1 million reduction in respect of the July sale of second quarter production. Distributable Income for the first nine months of 1998 totals $14.8 million ($0.55 per unit) including $3.3 million carried forward from 1997. Cash flow from operations for the third quarter of $13.5 million in 1998 compares with $22.5 million in 1997 while capital expenditures total $13.2 million in 1998 ($9.3 million in 1997). Syncrude Operations Syncrude's production for the first nine months of 1998 totalled 55.9 million barrels of Syncrude Sweet Blend, an increase of 3% over 1997. The third quarter production of 18.7 million barrels reflects a 3 million barrel shortfall from expectations due to the unscheduled maintenance turnaround of one coker to remove an excess build-up of coke in the reactor. The unit operating costs for the first nine months of $14.21 are 4% lower than the $14.83 achieved in 1997 due to the increase in production over a relatively fixed cost structure, the improving recovery rate of bitumen from the oil sands and the improving yield of Syncrude Sweet Blend from bitumen. There has also been a deferral of overburden stripping during 1998 which has contributed to lower operating costs. Syncrude's capital expenditures totalled $132 million during the third quarter with the strategic expenditures focused on the North Mine's second train and the Aurora Mine accounting for $80 million while the sustaining expenditures on the Mildred Lake plant aggregated $52 million. The regulatory application for the expansion of Syncrude's Upgrading Facilities from 110 million barrels per year to 175 million barrels was submitted to the Alberta Energy and Utilities Board during the quarter. The Board's decision respecting this application is not expected until 1999. CANADIAN OIL SANDS TRUST Highlights (thousands of dollars except per Unit amounts) Three Months Nine Months Ended September 30 Ended September 30 ------------------ ------------------ 1998 1997 1998 1997 ---- ---- ---- ---- Net Income $ 5,992 $14,575 $15,442 $34,325 Per Trust Unit $ 0.22 $ 0.63 $ 0.59 $ 1.49 Funds From Operations $13,487 $22,474 $37,052 $56,991 Per Trust Unit $ 0.50 $ 0.98 $ 1.40 $ 2.48 Cash Distribution $ 3,240 $11,500 $14,850 $27,600 Per Trust Unit $ 0.12 $ 0.50 $ 0.55 $ 1.20 Daily Average Sales (bbls) Syncrude Sweet Blend 22,464 23,533 20,169 19,853 Average Selling Price per barrel West Texas Intermediate (U.S.) $ 14.15 $ 19.80 $ 14.93 $ 20.84 ------- ------- ------- ------- ------- ------- ------- ------- Before Hedging $ 20.95 $ 26.90 $ 21.26 $ 27.95 Hedging - Oil Price - (0.11) 1.32 (0.08) - Currency (0.09) 0.32 (0.01) 0.43 ------- ------- ------- ------- $ 20.86 $ 27.11 $ 22.57 $ 28.30 ------- ------- ------- ------- ------- ------- ------- ------- Financial Performance Canadian Oil Sands' revenues were $43.2 million for the third quarter of 1998 compared to $58.6 million in 1997, a 26% drop. The 1998 revenues are the result of selling 2.1 million barrels of oil at an average price of Cdn$20.95 per barrel compared to selling 2.2 million barrels at an average price of Cdn$26.90 per barrel in 1997; the 1998 volumes are lower due to the unscheduled coker maintenance turnaround. The price of West Texas Intermediate crude oil averaged US$14.15 during the third quarter of 1998 compared to US$19.80 in the third quarter of 1997, roughly a 30% drop. During the first nine months of 1998, West Texas Intermediate averaged US$14.93 compared to US$20.84 in 1997, a price decrease of 30% similar to the third quarter. Canadian Oil Sands' share of Syncrude production averaged 22,464 barrels per day during the third quarter of 1998 compared to 23,533 barrels in 1997, a shortfall of 5%. Canadian Oil Sands included the proceeds from the July sale of approximately 220,000 barrels of Syncrude Sweet Blend in the second quarter Distributable Income as the production properly related to second quarter activity. For financial reporting, the sale of this production, along with the related operating costs, are recorded in the third quarter operations and the third quarter Distributable Income has been reduced to reflect the inclusion of these funds in the second quarter Distributable Income. Canadian Oil Sands' operating costs during the first nine months totalled $78.3 million ($14.21 per barrel) compared to $80.2 million ($14.83 per barrel) for 1997. A comparison of the operating costs for the third quarter of 1998 versus the third quarter of 1997 is not appropriate due to the unscheduled coker maintenance turnaround in 1998. The Crown Royalty charge for the first nine months of 1998 has been eliminated by the Crown Royalty credit which reduces Crown Royalties otherwise payable by 43% of capital expenditures incurred. The Crown Royalty credit for capital expenditures was introduced, effective January 1, 1997, to encourage further investment in the development of Alberta's oil sands. Canadian Oil Sands' capital expenditures for the first nine months of 1998 total $37.8 million compared to $27.8 million in 1997. The third quarter Distributable Income includes a $5.5 million provision for the external financing of capital expenditures which results in the funding of capital expenditures from operating cash flow being approximately $1.5 million less in 1998 than in 1997. Corporate Activities Risk Management: Canadian Oil Sands is subject to considerable U.S. dollar exposure attributable to the sale of crude oil. To reduce this exposure to exchange rate fluctuations, Canadian Oil Sands has entered into currency exchange contracts at an average rate of US$0.693 covering 50% of its crude oil sales for the next five years and 35% of its sales for an additional thirteen years. In addition, it has granted a call option to a counter-party for a further 15% of its sales revenue at an exchange rate of US$0.693 for five years commencing in 2003. Although Canadian Oil Sands oil sales revenue benefited by $2.1 million from the weakening in the Canadian dollar during the third quarter, the benefit has been offset by the $1.2 million payment required to settle currency exchange contracts. Canadian Oil Sands' currency exchange commitments required that US$17 million currency be settled at US$0.693 per Canadian dollar during the third quarter while the average exchange rate was US$0.660. Canadian Oil Sands has received $3.9 million from the settlement of its currency exchange contracts since the inception of the Trust through the first quarter of 1998 and has made payments totalling $1.4 million in the second and third quarter of 1998. As at October 19, 1998, the mark-to-market deficiency of its currency contracts was US$64 million with the spot exchange rate at approximately US$0.650. While the decline in the mark-to-market value of the currency exchange contracts reflects the current weakness in the Canadian currency relative to the US dollar, Canadian Oil Sands' revenues, net of currency exchange contract settlements, benefit from the weakness as only 50% of its revenues are hedged. During September 1998, certain of its currency exchange contracts was amended to permit collateralization by the Trust of mark-to-market deficiencies in excess of US$50 million and less than US$100 million. Under the amended arrangements, a payment is now required only when the deficiency exceeds US$100 million. At October 19, 1998, no pledge of collateral was required. Interest costs on the US$70 million of 7.625% Senior Notes during the quarter were $1.6 million, reflecting a US fixed rate of 5.95% for the quarter. Canadian Oil Sands has swapped its US interest rate position to a 5.95% fixed rate contract for the remaining eight years of the Senior Notes. In the 1997 Annual Report to Unitholders, Canadian Oil Sands has described the process and timeline being followed in addressing the potential impact of the Year 2000 Issue. The related projects are proceeding as planned and Canadian Oil Sands expects that all necessary remedial actions will be completed within the appropriate time frames. Additional details of Canadian Oil Sands' Year 2000 readiness will be available in the 1998 Annual Report to Unitholders. Income taxes: The Trust has designated this distribution as a ''return of capital'' which brings the accumulated ''return of capital'' distributions paid by the Trust since its inception to $3.28 per Trust Unit. The Trust is able to distribute cash as a ''return of capital'' due to its significant tax pools, which are expected to shelter distributions for at least the next five years. ''Return of capital'' distributions result in the Unitholder's adjusted cost base of the trust unit being reduced by the amount of such distributions. Such distributions also enable Unitholders who are non-residents of Canada to receive such amounts exempt from Canadian withholding tax. The income tax liability of each Unitholder will depend on the Unitholder's specific circumstances and, accordingly, each Unitholder should obtain independent advice regarding their specific income tax status. Unit Distributions: The quarterly distribution of $0.12 per unit will be paid on November 13, 1998 to Unitholders of record on November 6, 1998. Outlook Syncrude anticipates its annual production in 1998 will total 77.5 million barrels of Syncrude Sweet Blend at an expected unit operating cost of $13.50 per barrel. Capital expenditures are expected to total approximately $550 million in 1998 with the deferral of approximately $100 million of capital expenditures to future years. With the price of crude oil at or near historic lows, Syncrude's efforts to further lower operating costs as well as improve the bitumen recovery and yield factors become more important to enhance the value of our Trust Units. We are pleased to announce that Brian Stevens has joined Canadian Oil Sands as Chief Executive Officer replacing Monte Montemurro who is retiring. Mr. Stevens has over 25 years of experience in the oil and gas industry with PanCanadian Petroleum. Mr. Montemurro will continue as a Director of Canadian Oil Sands. Web-Site On Line Canadian Oil Sands also announces that its web-site is available to the public on the Internet and we encourage you to visit our site at www.canadianoilsandstrust.com. Unit Trading Activity Canadian Oil Sands' units trade on the Toronto Stock Exchange under the symbol CO.UN Three Months Ended --------------------------------------------------- September 30, June 30, March 31, December 31, 1998 1998 1998 1997 ------------- -------- --------- ------------ Unit Price ($) - High 20.75 23.45 27.25 28.75 - Low 15.00 18.50 19.60 23.75 - Close 20.25 20.85 22.40 27.00 Volume Traded (in 000's) 2,987 2,793 3,403 2,115 Average Number Of Units Outstanding (in 000's) 27,000 27,000 24,822 23,000 >> Certain information included in this interim report regarding, but not limited to, cash distributions, production targets, crude oil prices, exchange rates, unit operating costs and capital expenditures is forward looking and based upon assumptions and anticipated results that are subject to uncertainties. Should one or more of these uncertainties materialize or should the underlying assumptions prove incorrect, actual results may vary significantly from those expected. CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF TRUST ROYALTY AND DISTRIBUTABLE INCOME (unaudited) Three Months Nine Months Ended September 30 Ended September 30 --------------------- --------------------- 1998 1997 1998 1997 ---------- ---------- ---------- ---------- (thousands of dollars except per unit amounts) Revenues $ 42,077 $ 58,611 $ 119,991 $ 150,513 Operating expenses (27,151) (25,912) (78,349) (80,240) Administration expenses (835) (947) (2,201) (2,321) Crown royalties - (8,168) - (10,764) Interest expense (1,746) (1,097) (4,837) (3,259) Large Corporations Tax (105) (77) (283) (236) ---------- ---------- ---------- ---------- 12,240 22,410 34,321 53,693 Capital expenditures (13,174) (9,251) (37,848) (27,820) Utilization of Expansion Financing 5,500 - 13,800 - Mining reclamation trust (226) (220) (586) (548) Site restoration costs - - (323) (276) Reserve - future production costs (2,131) (1,205) 3,173 (190) ---------- ---------- ---------- ---------- Base for Trust Royalty $ 2,209 $ 11,734 $ 12,537 $ 24,859 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trust Royalty @ 99% $ 2,187 $ 11,616 $ 12,412 $ 24,610 Distribution of Surplus Cash - - - 3,353 Interest earned on Trust's short term investment 1,086 - 2,708 - Administration expenses of Trust (75) (116) (312) (363) ---------- ---------- ---------- ---------- Distributable income $ 3,198 $ 11,500 $ 14,808 $ 27,600 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Distributable income per Trust Unit $ 0.12 $ 0.50 $ 0.55 $ 1.20 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF CHANGES IN CASH POSITION (unaudited) Three Months Nine Months Ended September 30 Ended September 30 --------------------- --------------------- (thousands of dollars) 1998 1997 1998 1997 ---------- ---------- ---------- ---------- Cash provided by (used in): Operating activities: Net income $ 5,992 $ 14,575 $ 15,442 $ 34,325 Items not involving cash 7,495 7,899 21,610 22,666 ---------- ---------- ---------- ---------- Funds from operations 13,487 22,474 37,052 56,991 Net change in deferred items (900) (533) (351) (993) Site restoration costs - - (323) (276) Change in non-cash working capital 4,344 6,527 (2,415) (5,610) ---------- ---------- ---------- ---------- 16,931 28,468 33,963 50,112 ---------- ---------- ---------- ---------- Financing: Repayment of long-term debt - - - (95,000) Issuance of Senior Notes (US$70MM - 7.625%) - - - 96,278 Cash distribution to Unitholders (3,240) (11,500) (14,850) (27,600) Issuance of Trust Units - - 91,950 - ---------- ---------- ---------- ---------- (3,240) (11,500) 77,100 (26,322) ---------- ---------- ---------- ---------- Investments: Reclamation trust (226) (220) (586) (548) Capital expenditures (13,174) (9,251) (37,848) (27,820) ---------- ---------- ---------- ---------- (13,400) (9,471) (38,434) (28,368) ---------- ---------- ---------- ---------- Increase (decrease) in cash 291 7,497 72,629 (4,578) Cash at beginning of period 92,272 7,049 19,934 19,124 ---------- ---------- ---------- ---------- Cash at end of period $ 92,563 $ 14,546 $ 92,563 $ 14,546 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CANADIAN OIL SANDS TRUST CONSOLIDATED BALANCE SHEET (thousands of dollars) September 30, 1998 December 31, 1997 ------------------ ----------------- ASSETS Current assets: Cash $ 92,563 $ 19,934 Restricted cash 1,377 1,334 Accounts receivable 17,455 22,254 Inventories 11,814 10,424 Prepaid expenses 685 266 ------------------ ----------------- 123,894 54,212 Reclamation trust 1,764 1,178 Capital assets, net 441,584 423,559 Deferred Charges 13,022 6,029 ------------------ ----------------- $ 580,264 $ 484,978 ------------------ ----------------- ------------------ ----------------- LIABILITIES AND UNITHOLDERS EQUITY Current liabilities: Accounts payable and accrued liabilities $ 24,434 $ 18,561 Unit distribution payable 3,240 13,800 ------------------ ----------------- 27,674 32,361 Other liabilities 14,280 14,365 Long-term debt 107,100 100,100 Future site reclamation and restoration costs 8,708 8,192 Preferred shares of subsidiary 2,000 2,000 ------------------ ----------------- 159,762 157,018 Unitholders' equity 420,502 327,960 ------------------ ----------------- $ 580,264 $ 484,978 ------------------ ----------------- ------------------ ----------------- CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF INCOME AND UNITHOLDERS EQUITY (unaudited) Three Months Nine Months Ended September 30 Ended September 30 --------------------- --------------------- (thousands of dollars except per unit amounts) 1998 1997 1998 1997 ---------- ---------- ---------- ---------- Revenues: Syncrude Sweet Blend $ 41,722 $ 58,504 $ 119,281 $ 149,753 Other 1,441 109 3,418 766 ---------- ---------- ---------- ---------- 43,163 58,613 122,699 150,519 ---------- ---------- ---------- ---------- Expenses: Operating 27,151 25,912 78,349 80,240 Administration 910 1,063 2,513 2,684 Crown royalties - 8,168 - 10,764 Interest 1,746 1,097 4,837 3,259 Depletion, depreciation and amortization 7,184 7,665 21,051 18,846 Large Corporations Tax 105 77 283 236 Dividends on preferred shares of subsidiary 75 56 224 165 ---------- ---------- ---------- ---------- 37,171 44,038 107,257 116,194 ---------- ---------- ---------- ---------- Net income for the period 5,992 14,575 15,442 34,325 Unitholders' equity, beginning of period 417,750 321,763 327,960 318,113 Proceeds on issue of 4,000,000 Trust Units - - 91,950 - Cash distribution to Unitholders (3,240) (11,500) (14,850) (27,600) ---------- ---------- ---------- ---------- Unitholders' equity, end of period $ 420,502 $ 324,838 $ 420,502 $ 324,838 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net income per Trust Unit $ 0.22 $ 0.63 $ 0.59 $ 1.49 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Distributable income per Trust Unit $ 0.12 $ 0.50 $ 0.55 $ 1.20 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Canadian Oil Sands Investments Inc. PO Box 2850 150 - 9 Avenue SW Calgary, AB T2P 2S5 Canada Units Listed - Symbol: CO.UN The Toronto Stock Exchange

To: SofaSpud who wrote (12913)	10/21/1998 1:40:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Remington Energy Ltd. Closes Private Placement of Flow-Through Common Shares CALGARY, Oct. 20 /CNW/ - REMINGTON ENERGY LTD. (''Remington'') announces that it has closed its previously announced private placement of 2,000,000 common shares at an issue price of $10.00 per share. Proceeds from the offering will be used to fund exploration expenditures and Remington will renounce to subscribers Canadian exploration expenses equal to the subscription amount for the flow-through common shares.

To: SofaSpud who wrote (12913)	10/21/1998 1:45:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Chieftain International, Inc. - Interim Report and News Release - Nine Months ended September 30, 1998 EDMONTON, Oct. 20 /CNW/ - Chieftain International, Inc. (TSE & AMEX: CID) highlights increased production, successful drilling and significant acquisitions in the Gulf of Mexico area in its interim report on the first nine months of 1998. Highlights Natural gas and oil production for the first nine months of 1998 reached a new high of 98.5 mmcfde. Average daily U.S. natural gas production reached an all-time record in the third quarter. Oil and ngls production increased by 33% from the comparable quarter of 1997. Sixteen wells drilled in the Gulf of Mexico during the first nine months resulted in a 69% success rate. Chieftain acquired a 50% interest in a significant natural gas discovery onshore in South Louisiana. Acreage holdings in the Gulf of Mexico increased to 154 blocks making Chieftain the 13th largest leaseholder on the Continental Shelf. Drilling Results Gulf of Mexico drilling results include nine gas, one oil and one oil and gas well. Onshore drilling results include 23 successful development wells in Utah. Production and Pricing Three Months ended Natural Gas (mmcfd) Oil and NGLs (bd) September 30, 1998 Gulf of North Mexico Sea Total ----------------------------------------------------------------------- Gross Production 72.2 1.8 74.0 3,261 Royalties 14.8 - 14.8 438 Net Production 57.4 1.8 59.2 2,823 Average Price US$ $1.97 $1.19 $1.96 $11.86 C$ $3.01 $1.82 $2.99 $18.10 Three Months ended Natural Gas (mmcfd) Oil and NGLs (bd) September 30, 1997 Gulf of North Mexico Sea Total ----------------------------------------------------------------------- Gross Production 67.9 2.1 70.0 2,460 Royalties 14.0 - 14.0 350 Net Production 53.9 2.1 56.0 2,110 Average Price US$ $2.13 $0.90 $2.09 $17.92 C$ $2.94 $1.24 $2.89 $24.77 Nine Months ended Natural Gas (mmcfd) Oil and NGLs (bd) September 30, 1998 Gulf of North Mexico Sea Total ----------------------------------------------------------------------- Gross Production 70.7 7.8 78.5 3,341 Royalties 14.5 - 14.5 440 Net Production 56.2 7.8 64.0 2,901 Average Price US$ $2.09 $1.34 $2.02 $12.39 C$ $3.19 $2.04 $3.08 $18.91 Nine Months ended Natural Gas (mmcfd) Oil and NGLs (bd) September 30, 1997 Gulf of North Mexico Sea Total ----------------------------------------------------------------------- Gross Production 67.9 9.5 77.4 2,478 Royalties 13.6 - 13.6 356 Net Production 54.3 9.5 63.8 2,122 Average Price US$ $2.38 $1.50 $2.27 $19.28 C$ $3.29 $2.07 $3.14 $26.64 During the third quarter, the Company's U.S. natural gas production increased by 6% from the comparable quarter of 1997, reaching a record average of 72 mmcfd despite major weather-related interruptions, which reduced September production significantly. The Company's production facilities incurred no significant damage. The average price received for U.S. gas production during the third quarter declined by 8% from the comparable 1997 quarter to $1.97 per mcf. Natural gas accounts for 79% of Chieftain's production as calculated both by revenues and by energy equivalents. Gas sales in the North Sea were completely curtailed during July and August in response to weak prices and annual field maintenance. Sales resumed in September at rates averaging 5 mmcfd after the price recovered to average $1.19 per mcf. Gas sales have been increased to 10 mmcfd for October in response to further price increases. During the third quarter, oil and ngls production averaged 3,261 bd, an increase of 33% over the same period last year. Production increased from the Aneth/Ratherford area in Utah, from East Cameron Block 349 and from the long-term production test in Libya. Oil prices declined by 34% to average $11.86 per barrel. Onshore Activity Vermilion Parish, Louisiana During the third quarter, Chieftain acquired a 50% interest in approximately 2,300 acres, including the ''Simon No.2'' producing well and the ''D.W. Guidry No.1'' exploration well. Subsequently, Murphy Oil Corporation, as operator, reported that the Guidry well had discovered 150 feet of net natural gas pay and stated ''The well encountered hydrocarbons in the prolific Marg. Tex formation within a 600-foot interval below 17,000 feet''. The operator said that the discovery confirms the presence of a large structure underlying the Northeast Wright Field. The Guidry well was drilled as a 3,000-foot offset to the Simon No.2 well which commenced production in May 1996. Chieftain's interest in the Guidry well is subject to a penalty on a portion of the cost of the well. The significance of the find to Chieftain will be determined by further drilling. An offset exploration well is scheduled to commence drilling early in 1999. Aneth Unit, Utah (Chieftain 13.4%) CO(2) injection is scheduled to begin this month to initiate an enhanced recovery pilot project covering approximately one-third of the production unit. Five successful multi-lateral horizontal development wells have been drilled in the unit this year. Ratherford Unit, Utah (Chieftain 21.4%) Chieftain has approved operational plans for a unit-wide CO(2) enhanced recovery project. Eighteen successful multi-lateral horizontal development wells have been drilled in the production unit this year and one well was drilling at the end of the period. The field-wide horizontal drilling program is expected to be complete this year. Offshore Activity Chieftain participated in high bids for five offshore blocks at the August Western Gulf of Mexico lease sale. Three leases have been awarded and two remain subject to U.S. Minerals Management Service acceptance. Under a seismic option agreement, the Company acquired an interest in an additional offshore block. Mustang Island A-51 (Chieftain 25%) A 20,500-foot exploration well is drilling below 15,000 feet on its way to test a gas prospect in the prolific and evolving Corsair Fault System trend offshore south Texas. High Island 207 (Chieftain 50%) Production commenced from the discovery well on this block in August at the rate of 7 mmcfd, net to Chieftain. Further drilling is planned for 1999. East Cameron 34 (Chieftain 40%) A platform will be installed in the fourth quarter to commence production from the early 1998 natural gas discovery well and further drilling will be undertaken. Vermilion 368 (Chieftain 15%) The Company is participating in a 17,000-foot exploratory well to test a gas prospect offshore Louisiana. South Marsh Island 39 (Chieftain 50%) Two production platforms with design capacity, net to Chieftain, of 2,500 bd of oil and 20 mmcfd of gas will be installed in the fourth quarter. Production from two wells is expected to commence around year-end and a multi-well drilling program will follow. Eugene Island 189 (Chieftain 75%) Follow-up drilling planned for the fourth quarter will help to determine production facility requirements for the field. South Timbalier 196 (Chieftain 50%) A 12,000-foot exploratory well to test a multi-zone gas prospect is proposed for the fourth quarter of 1998. Main Pass (Chieftain 7-20%) Three successful gas wells have been drilled on Blocks 223 and 250 since April to extend reserves and accelerate production. Chieftain plans to participate with a 20% interest in a follow-up well on Block 250 where a production platform will be installed and connected to the Block 223 platform in the fourth quarter. In addition, Chieftain will participate with a 10% interest in the installation of a production facility on Block 225 to tie-in two gas wells. Industry Conditions and Outlook Since the beginning of 1998, the industry has experienced a protracted period of low oil prices, with average field prices in July and August down 34% and 36%, respectively, from one year earlier. The resulting sharp revenue decline has triggered corporate reorganizations, mergers and property sales in the industry. Utilization of drilling equipment, at capacity 12 months ago, has dropped significantly in the Gulf of Mexico. While this difficult environment requires rigorous evaluation of exploration and development ventures, it also creates opportunities for Chieftain. Drilling costs have declined substantially, and the Company's strong balance sheet has allowed it to respond to opportunities like the promising acquisition of the Vermilion Parish acreage. Financial Substantial price declines for both oil and ngls and for natural gas in the third quarter of 1998 reduced revenues from US$14,891 (C$20,580) million to US$13,943 (C$21,276) million and cash flow before dividends from US$10,564 (C$14,599) million to US$8,557 (C$13,057) million compared with the third quarter of 1997. Basic cash flow per share, net of preferred dividends, was US$2.04 (C$3.11) compared with US$2.58 (C$3.56) in the 1997 period. Chieftain reports financial information in U.S. dollars. Certain Canadian dollar comparisons are provided below using exchange rates at September 30, 1998 and 1997. Financial Results (in thousands except per share amounts) US$ C$ ------------------------------------------------------------------------ Nine Months ended September 30, 1998 1997 1998 1997 Revenue $47,465(1) $52,261 $72,426(1) $72,225 Cash flow before dividends on preferred shares of a subsidiary $31,266 $38,776 $47,709 $53,588 Cash flow from Operations (2) $27,559 $35,069 $42,052 $48,465 Per common share - Basic (2) $ 2.04 $ 2.58 $ 3.11 $ 3.56 - Fully diluted (2) $ 1.80 $ 2.18 $ 2.75 $ 3.02 Income before dividends on preferred shares of a subsidiary $ 56 $ 7,197 $ 84 $ 9,945 Net income (loss) for the period (2) $(3,651) $ 3,490 $(5,572) $ 4,822 Per common share - Basic (2) $ (0.27) $ 0.26 $ (0.41) $ 0.35 - Fully diluted (2) $ (0.27) $ 0.26 $ (0.41) $ 0.35 (1) Includes a successful US$1.6 (C$2.4) million claim for recovery of past years' excess transportation charges. (2) After dividends of US$3,707,000 on preferred shares of a subsidiary. Balance Sheet Highlights (US$ in thousands) Sep 30, 1998 Dec 31, 1997 ------------------------------------------------------------------------ Assets Current assets $ 17,311 $ 38,393 Property, plant and equipment - net 272,905 236,715 Deferred income taxes 2,888 3,442 ------------------------------------- $ 293,104 $ 278,550 ------------------------------------- ------------------------------------- Liabilities and Shareholders' Equity Current liabilities $ 13,279 $ 15,717 Long-term debt 25,000 - Deferred income taxes 13,927 13,367 Preferred shares of a subsidiary 63,403 63,403 Shareholders' equity 177,495 186,063 ------------------------------------- $ 293,104 $ 278,550 ------------------------------------- ------------------------------------- Chieftain International, Inc. and Subsidiary Companies Consolidated Statement of Income 3 Qtr YTD 3 Qtr YTD Period ended September 30, 1998 1998 1997 1997 ------------------------------------------------------------------------- (US$ in thousands except per share amounts) Revenue $ 13,943 $ 47,465(1)$ 14,891 $ 52,261 ------------------------------------------- Production costs 4,206 12,219 3,367 10,185 General and administrative expenses 917 3,668 996 3,288 Interest 260 285 - - Depletion and amortization 9,905 30,096 8,579 27,124 ------------------------------------------- 15,288 46,268 12,942 40,597 ------------------------------------------- Income (loss) before taxes and dividends on preferred shares of a subsidiary (1,345) 1,197 1,949 11,664 Income taxes (109) 1,141 677 4,467 ------------------------------------------- Income (loss) before dividends on preferred shares of a subsidiary (1,236) 56 1,272 7,197 Dividends on preferred shares of a subsidiary 1,236 3,707 1,236 3,707 ------------------------------------------- Net income (loss) applicable to common shares $ (2,472) $ (3,651) $ 36 $ 3,490 ------------------------------------------- Net income (loss) per common share - Basic $ (0.18) $ (0.27) $ 0.01 $ 0.26 - Fully diluted $ (0.18) $ (0.27) $ 0.01 $ 0.26 ------------------------------------------- (1) includes a successful US$1.6 million claim for recovery of past years' excess transportation charges. Consolidated Statement of Changes in Financial Position 3 Qtr YTD 3 Qtr YTD Period ended September 30, 1998 1998 1997 1997 ------------------------------------------------------------------------- (US$ in thousands except per share amounts) Operating activities: Net Income (loss) applicable to common shares $ (2,472) $ (3,651) $ 36 $ 3,490 Items not requiring funds 9,793 31,210 9,292 31,579 ------------------------------------------- Cash flow from operations 7,321 27,559 9,328 35,069 Net change in non-cash operating working capital 1,609 (713) 2,570 5,713 ------------------------------------------- 8,930 26,846 11,898 40,782 ------------------------------------------- Financing activities: Issue of common shares 136 437 599 923 Purchase of common shares for cancellation (2,294) (5,355) - - Increase In long-term debt 15,000 25,000 - - ------------------------------------------- 12,842 20,082 599 923 ------------------------------------------- Investing activities: Lease acquisition, exploration and drilling costs (18,159) (55,847) (17,666) (46,387) Pipelines and production equipment acquired (4,413) (10,351) (2,849) (6,026) ------------------------------------------- (22,572) (66,198) (20,515) (52,413) Purchase of other capital assets (28) (87) (242) (271) Change in investing accounts payable and accrued (673) (1,465) 3,017 1,888 ------------------------------------------- (23,273) (67,750) (17,740) (50,796) ------------------------------------------- Change in cash and equivalents (1,501) (20,822) (5,243) (9,091) Beginning cash and equivalents 7,604 26,925 38,601 42,449 ------------------------------------------- Ending cash and equivalents $ 6,103 $ 6,103 $33,358 $33,358 ------------------------------------------- ------------------------------------------- Cash flow from operations per common share - Basic $ 0.54 $ 2.04 $ 0.69 $ 2.58 ------------------------------------------- ------------------------------------------- - Fully diluted $ 0.50 $ 1.80 $ 0.60 $ 2.18 ------------------------------------------- ------------------------------------------- Subject to adjustment and audit at end of year. Abbreviations b barrels or billions when used as ''bcf'' cf cubic feet d per day e equivalent m thousands mm millions ngls natural gas liquids t trillion Standards - Oil is converted to gas at the rate of 1 b equals 6 mcf - Unless otherwise stated, all production figures are Chieftain's share of production before royalties - Unless otherwise stated, all financial figures are in United States dollars. For convenience, certain Canadian dollar equivalents are provided using exchange rates at September 30, 1998 and 1997.

To: SofaSpud who wrote (12913)	10/21/1998 1:52:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Canadian Occidental Petroleum Announces Third Quarter Results, New Production in Nigeria, Continuing Success in Yemen and Disposition of Non-Core Assets CALGARY, Oct. 20 /CNW/ - Canadian Occidental Petroleum Ltd. today reported cash flow from operations of $137 million ($1.00 per share) in the third quarter, compared to cash flow of $213 million ($1.56 per share) in the third quarter of 1997. Lower cash flow was the result of significantly lower worldwide crude oil prices and lower production volumes. This contributed to a loss of $19 million ($(0.14) per share) in the quarter compared to net income of $31 million ($0.23 per share) in the third quarter of 1997. Crude oil production was 191,000 barrels per day, compared to 208,700 barrels in the third quarter of 1997. Natural gas production averaged 396 million cubic feet per day, compared to 421 million cubic feet in the third quarter of 1997. Since mid-1997, we have disposed of approximately 15,000 barrels of daily oil production and 40 million cubic feet of daily gas production in Canada in order to focus our financial and human resources on those projects with the best long-term prospects. These dispositions, combined with short-term weather-related production shut-ins in the Gulf of Mexico contributed to the volume decrease. The shut-in of low-margin heavy oil production in Canada and lower production from Syncrude also contributed to the year-over-year decrease in production volumes. CanadianOxy continues to develop its base in West Africa. The Ejulebe Field, offshore Nigeria, commenced production on September 19, a full two weeks ahead of schedule. The field is located in approximately 45 feet of water, with reservoirs at depths between 6,000 and 8,000 feet. All production facilities have been commissioned and we expect to be at full commercial production rates of 10,000 barrels of oil per day, net to us, by late October. CanadianOxy is also exploring for significant new reserves in Nigeria. Following the acquisition of a 20 per cent interest in OPL 222 and OPL 223 earlier this year, we participated in the drilling of two deep-water oil exploration wells offshore Nigeria. Both wells have reached target depth and the results are currently being evaluated. In Yemen, our drilling program continues to exceed expectations. Seven successful development wells were drilled on the Masila Block during the quarter. Four wells were tied-in to production facilities and are currently producing at a combined rate of 19,000 barrels of oil per day. The remaining wells will be tied-in in the fourth quarter at initial rates of approximately 20,000 barrels of oil per day. Production from the Masila Block continues to set new records and is currently at 205,000 barrels of oil per day (106,600 net to CanadianOxy). CanadianOxy is managing a significant capital program. Capital expenditures for the quarter totaled $209 million compared to $257 million in the third quarter of 1997. High levels of drilling activity in Yemen and exploration and development projects in Nigeria and Australia account for a significant portion of the expenditures. CanadianOxy continues to streamline its portfolio through the disposition of non-core assets. Sales of $43 million were closed during the third quarter, bringing total proceeds from asset dispositions for the first nine months of the year to $103 million. In addition, CanadianOxy has entered into agreements to dispose of conventional oil and gas assets in Canada for proceeds of $157 million. These include oil and natural gas properties in Northwest Alberta and Northeast British Columbia and oil and natural gas properties in Central Alberta. The properties currently produce 4,100 barrels of oil and 27 million cubic feet of natural gas per day. The sales also include 411,400 net acres of undeveloped land in Alberta and British Columbia. The sales are expected to close in the fourth quarter. We will continue to focus our efforts on our core holdings in the heavy oil belt of Southwest Saskatchewan, the light oil of the Williston Basin, our Hay River discovery in Northeast British Columbia and our shallow gas in Southwest Saskatchewan. Proceeds from asset sales will be used to reduce debt. At September 30, 1998, CanadianOxy's net debt was $2.4 billion. Our Chemicals business continues to generate significant free cash flow despite a slowdown in the pulp and paper industry. Cash flow was $21 million for the quarter, while capital totaled $5 million. Victor Zaleschuk, President and Chief Executive Officer commented: ''The recent dispositions demonstrate our commitment to a strong balance sheet while enhancing our strategic focus on our core assets and operations. We are positioning ourselves for an exciting phase of new growth with production and reserve additions coming from Nigeria, Australia, Yemen, Syncrude and from our Hay River discovery in Canada. This exceptional asset base, combined with a strong portfolio of opportunities worldwide and increased financial capacity will allow us to continue creating exceptional value for our shareholders for years to come.'' The Board of Directors has declared a quarterly dividend of $0.075 per common share payable January 1, 1999 to shareholders of record on December 11, 1998. CanadianOxy is an independent, Canadian-based global energy and chemicals company. Core business activities include the exploration, development, production and marketing of crude oil and natural gas and the manufacture and marketing of industrial chemicals. CanadianOxy is one of Canada's largest oil and gas producers with a daily output of approximately 240,000 barrels of oil equivalent. CANADIAN OCCIDENTAL PETROLEUM LTD. September 30, 1998 FINANCIAL HIGHLIGHTS (Millions of Canadian dollars except per share data) Three Months Nine Months ---------------------- --------------------- 1998 1997 1998 1997 ---------------------- --------------------- Net Sales $ 354 $ 455 $ 1,070 $ 1,216 Net Income (Loss) $ (19) $ 31 $ (38) $ 124 Per Common Share $ (0.14) $ 0.23 $ (0.28) $ 0.91 Cash Flow from Operations $ 137 $ 213 $ 433 $ 623 Per Common Share $ 1.00 $ 1.56 $ 3.16 $ 4.57 Capital Expenditures $ 209 $ 257 $ 720 $ 577 Net Debt $ 2,405 $ 2,474 $ 2,405 $ 2,474 CASH FLOW FROM OPERATIONS (Millions of Canadian dollars) Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- Cash Flow from Operations Oil and Gas Yemen $ 83 $ 117 $ 261 $ 337 Canada 45 75 129 168 United States 31 37 108 127 Alternate Fuels 11 20 26 40 North Sea 5 10 37 44 Other Countries (4) (1) (11) - Marketing 8 2 19 5 -------- -------- -------- -------- 179 260 569 721 Chemicals 21 23 58 67 -------- -------- -------- -------- 200 283 627 788 Interest and Other Corporate Items (38) (31) (120) (68) Income Taxes (25) (39) (74) (97) -------- -------- -------- -------- $ 137 $ 213 $ 433 $ 623 -------- -------- -------- -------- -------- -------- -------- -------- OPERATING PROFIT (Millions of Canadian dollars) Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- Operating Profit (Loss) Oil and Gas Yemen $ 40 $ 76 $ 124 $ 202 Canada (11) (3) (76) 16 United States (3) 10 10 50 Alternate Fuels 9 16 20 31 North Sea (1) 4 7 18 Other Countries (27) (10) (80) (45) Marketing 6 (1) 11 - -------- -------- -------- -------- 13 92 16 272 Chemicals 15 16 40 47 -------- -------- -------- -------- 28 108 56 319 Interest and Other Corporate Items (42) (34) (130) (78) Income Tax Recovery (Provision) (5) (43) 36 (117) -------- -------- -------- -------- Net Income (Loss) $ (19) $ 31 $ (38) $ 124 -------- -------- -------- -------- -------- -------- -------- -------- PRODUCTION HIGHLIGHTS Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- Crude Oil and Natural Gas Liquids (thousand barrels per day) Yemen 105.8 100.9 104.2 98.5 Canada 58.2 73.4 59.6 50.0 United States 10.6 12.3 12.6 12.5 Alternate Fuels 14.6 16.7 14.8 14.3 Other Countries 1.8 5.4 2.0 4.4 -------- -------- -------- -------- 191.0 208.7 193.2 179.7 -------- -------- -------- -------- -------- -------- -------- -------- Natural Gas (million cubic feet per day) Canada 269 306 276 239 United States 111 84 117 94 North Sea 16 31 33 41 -------- -------- -------- -------- 396 421 426 374 -------- -------- -------- -------- -------- -------- -------- -------- AVERAGE COMMODITY PRICES (Canadian dollars except WTI) Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- WTI Average (U.S.$) $ 14.16 $ 19.80 $ 14.93 $ 20.84 Crude Oil and Natural Gas Liquids (per barrel) Yemen $ 16.17 $ 25.09 $ 17.15 $ 25.61 Canada 12.89 18.31 12.42 18.60 United States 18.44 26.38 19.31 27.75 South America 15.94 13.91 17.73 15.96 Corporate Average 15.31 22.32 15.76 23.48 Synthetic Crude Oil (per barrel) $ 21.08 $ 27.04 $ 21.23 $ 28.24 Natural Gas (per thousand cubic feet) Canada $ 1.79 $ 1.60 $ 1.81 $ 1.73 United States 3.11 3.67 3.28 3.57 North Sea 6.35 5.50 5.49 5.20 Corporate Average 2.32 2.30 2.49 2.57 CANADIAN OCCIDENTAL PETROLEUM LTD. CONSOLIDATED STATEMENT OF INCOME For the three and nine months ended September 30, 1998 and 1997 (Millions of Canadian dollars) Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- Revenues Net Sales Oil and Gas - Gross Sales $ 366 $ 535 $1,144 $1,449 Royalties and Other 97 161 290 446 -------- -------- -------- -------- Oil and Gas 269 374 854 1,003 Chemicals and Other 85 81 216 213 -------- -------- -------- -------- 354 455 1,070 1,216 Gain on Disposition of Assets 17 1 36 21 Marketing, Interest, and Other Income 25 19 62 47 -------- -------- -------- -------- 396 475 1,168 1,284 Cost and Expenses Cost of Sales Oil and Gas 93 89 277 241 Chemicals and Other 56 50 142 130 -------- -------- -------- -------- 149 139 419 371 Selling, Administrative and Other 34 37 105 81 Depreciation, Depletion and Amortization 159 160 493 431 Exploration 32 28 116 84 Interest, Net 36 37 109 76 -------- -------- -------- -------- 410 401 1,242 1,043 Income (Loss) Before Income Taxes (14) 74 (74) 241 (Provision for) Recovery of Income Taxes (5) (43) 36 (117) -------- -------- -------- -------- Net Income (Loss) $ (19) $ 31 $ (38) $ 124 -------- -------- -------- -------- -------- -------- -------- -------- Net Income (Loss) Per Common Share $(0.14) $ 0.23 $(0.28) $ 0.91 -------- -------- -------- -------- -------- -------- -------- -------- CANADIAN OCCIDENTAL PETROLEUM LTD. CONSOLIDATED STATEMENT OF CASH FLOWS For the three and nine months ended September 30, 1998 and 1997 (Millions of Canadian dollars) Three Months Nine Months -------------------- ------------------- 1998 1997 1998 1997 -------------------- ------------------- Operating Activities Net Income (Loss) $ (19) $ 31 $ (38) $ 124 Charges and Credits to Income not Involving Cash 124 154 355 415 Exploration Expense 32 28 116 84 Changes in Non-Cash Working Capital 23 30 17 (30) Other 3 (17) (6) 15 -------- -------- -------- -------- 163 226 444 608 Financing Activities Proceeds from Long-Term Debt 272 280 958 2,248 Repayment of Long-Term Debt (364) (300) (869) (714) Net Proceeds from (Repayment of) Short-Term Borrowings 95 (28) 84 99 Dividends (10) (10) (31) (31) Issue of Common Shares 2 - 9 - Changes in Non-Cash Working Capital - 3 6 3 Other 5 1 (5) - -------- -------- -------- -------- - (54) 152 1,605 Investing Activities Capital Expenditures Exploration, Development and Other (205) (256) (703) (563) Proved Property Acquisitions (4) (1) (17) (14) Acquisition - - - (1,680) Proceeds on Disposition of Assets 43 8 103 82 Changes in Non-Cash Working Capital (29) 44 (83) (27) Other - - 33 - -------- -------- -------- -------- (195) (205) (667) (2,202) Effect of Exchange Rate Changes on Cash (1) (1) 4 8 -------- -------- -------- -------- Increase (Decrease) in Cash (33) (34) (67) 19 Cash - Beginning of Period 76 123 121 109 -------- -------- -------- -------- Cash - End of Period $ 43 $ 89 $ 54 $ 128 -------- -------- -------- -------- -------- -------- -------- -------- Interest Paid $ 32 $ 29 $ 102 $ 73 -------- -------- -------- -------- -------- -------- -------- -------- Income Taxes Paid $ 18 $ 17 $ 62 $ 79 -------- -------- -------- -------- -------- -------- -------- -------- CANADIAN OCCIDENTAL PETROLEUM LTD. CONSOLIDATED CONDENSED BALANCE SHEET As at September 30, 1998 and December 31, 1997 (Millions of Canadian dollars) SEPTEMBER 30, 1998 DECEMBER 31, 1997 ------------------ ----------------- ASSETS Cash and Short-Term Investments $ 54 $ 121 Other Current Assets 647 573 Property, Plant and Equipment, Net 3,956 3,814 Deferred Charges and Other Assets 41 39 ----------- ----------- $ 4,698 $ 4,547 ----------- ----------- ----------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 769 $ 670 Long-Term Debt 2,329 2,167 Deferred Income Taxes 115 217 Dismantlement and Site Restoration Allowance 159 147 Other Deferred Credits and Liabilities 92 51 Minority Interest 46 45 Shareholders' Equity 1,188 1,250 ----------- ----------- $ 4,698 $ 4,547 ----------- ----------- ----------- -----------

To: SofaSpud who wrote (12913)	10/21/1998 1:57:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Westfort Energy Ltd. Progress Report Pelahatchie Field JACKSON, MISSISSIPPI Oct. 20 /CNW/ - Management reports that problems associated with hurricane weather and additionally a problem with one workover rig have caused delays in completing the 18-4 No. 1 well; however work is again proceeding timely and the company expects test results next week. Those results will be announced when they take place by press release. Private Placement Closed ------------------------ Westfort also announced that it recently closed a private placement for the sale of 1,500,000 units of the Company at $0.84 per unit, each unit comprised of one common share and one common share purchase warrant entitling the holder to purchase one common share at $1.05 for two years. The company intends to utilize funds raised in furthering development of its drilling/development activities.

To: SofaSpud who wrote (12913)	10/21/1998 2:01:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY DISPOSITION / Union Pacific Resources Canadian Assets Sale Essentially Complete, Proceeds Expected to Exceed $143 Million FORT WORTH, Texas, Oct. 20 /CNW/ -- Union Pacific Resources Group Inc. (NYSE: UPR) today announced that its Canadian subsidiary, Union Pacific Resources Inc. (UPRI), has nearly completed its 1998 property divestiture program. The Company expects to close on the final Canadian property in the original offering later this year and projects that its 1998 non-core property sales program will top $143 million. The Canadian divestiture program, part of UPR's larger deleveraging program announced earlier this year, was well received by the market. Several purchasers expressed strong levels of interest in the properties offered; unit prices from the sales averaged more than six dollars per proved barrel of oil equivalent. "The success we achieved can be attributed to the quality of our assets and the commitment of our employees," said John Vering, president and CEO of Calgary-based UPRI. "We attracted some very strong values that will help us achieve our 1998 property sales targets despite the current commodity price environment." UPRI's non-core property sales comprised assets in the Chinchaga, Harmatton, Ansell, Ferrybank, Pembina, Turner Valley, Majorville, Taber North, Clear Prairie, Rainbow, Sylvan Lake and Spirit River areas of Western Canada. The Company plans limited additional property sales not included in the original divestiture package that are expected to close in the first quarter of 1999. Union Pacific Resources is one of the nation's largest independent oil and gas exploration and production companies. Based in Fort Worth, Texas, UPR has been the #1 domestic driller for the past six years and is the #1 gas producer in the state of Texas.

To: SofaSpud who wrote (12913)	10/29/1998 3:29:00 PM
From: Kerm Yerman	Respond to of 15196

ACQUISITIONS - MERGERS / Big Horn Resources Ltd. Acquires Ironwood Petroleum Ltd. CALGARY, Oct. 29 /CNW/ - Big Horn Resources Ltd. (''Big Horn'') (BGH:VSE) announced today that approximately 8.33 million Common Shares of Ironwood Petroleum Ltd. (''Ironwood''), representing approximately 91% of the issued and outstanding Common Shares of Ironwood, have been deposited pursuant to the offer of its wholly-owned subsidiaries, 800548 Alberta Inc. and 800550 Alberta Inc., to acquire all of the issued and outstanding Common Shares of Ironwood for $0.76 (Canadian) for each Ironwood Common Share. As a result, Big Horn, through its subsidiaries, has taken-up and paid for all of the Common Shares deposited to the offer and extended the period during which Common Shares may be deposited until 5:00 p.m. (Toronto time) on November 9, 1998. A Notice of Extension is currently being prepared which will be mailed to all registered shareholders of Ironwood and intermediaries. A meeting of the board of directors of Ironwood has been called to facilitate the resignation of Ironwood's existing directors and the appointment of the following nominees of Big Horn: Reginald J. Greenslade, Walter A. Dawson and George Hill. The newly appointed officers of Ironwood will be Reginald G. Greenslade, President and Chief Executive Officer, Luc Chartrand, Chief Financial Officer and Richard F. McHardy, Corporate Secretary. The depositary is CIBC Mellon Trust Company which has established depositories in Toronto and Calgary.

To: SofaSpud who wrote (12913)	10/29/1998 3:31:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Purcell Energy Announces Chevron Selects Fort Liard, NWT Well Location CALGARY, Oct. 29 /CNW/ - Purcell Energy Ltd. announces that Chevron Canada Resources has elected to drill the K-29 location on Purcell's 60% owned 11,000 acre property at Fort Liard situated approximately 15 km east of the Pointed Mountain gas field. The location is based on interpretation of a 60 km(2) 3D seismic survey conducted over the property in August. The Chevron K-29 well is approximately 1300 metres northeast of the D-29 well drilled in 1980 which Purcell believes contains bypassed gas pay. Chevron is presently constructing a 22 km road from the town of Fort Liard north to the well location, which will permit year round access. Drilling is expected to commence in January, 1999. Under the terms of the farmout agreement Chevron will pay 100% of the cost of the well (with no payout) in order to earn 60% of Purcell's interest in the property. Purcell is effectively carried for a 24% interest in the first well and thereafter will participate for its share of further drilling, facilities and pipelining costs. Purcell retains a 60% interest in the original F-25A discovery well. The well will target the Nahanni formation at a depth of approximately 3,400 metres. Purcell's Fort Liard property is a large foothills structure evidenced at surface by an anticline. An independent engineering appraisal assigned gross proved and probable reserves to Purcell's F-25A discovery well of 38 bcf of gas. Seismic data suggests the potential for additional gas reserves exceeding 300 bcf. At the present time production from the Fort Liard project is targeted to commence in April, 2000.

To: SofaSpud who wrote (12913)	10/29/1998 3:34:00 PM
From: Kerm Yerman	Respond to of 15196

DIVIDEND NOTICE / Petro-Canada Declares Quarterly Dividend CALGARY, Oct. 29 /CNW/ - The Board of Directors of Petro-Canada today declared a quarterly dividend of 8 cents per share on its common and variable voting shares, payable on January 1, 1999 to shareholders of record on December 3, 1998. Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry. Its common and variable voting shares trade on Canadian exchanges under the symbol PCA, and its variable voting shares trade on the New York Stock Exchange under the symbol PCZ.

To: SofaSpud who wrote (12913)	10/29/1998 3:38:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Avid Oil & Gas Ltd. Reports Nine Month Results CALGARY, Oct. 29 /CNW/ - Avid Oil & Gas Ltd. is pleased to present its' operating and financial results for the first nine months of 1998. Avid concluded the first nine months of this year with a production level of 240 boepd, monthly cash flow in excess of fixed costs, and a working capital surplus of $1.9 million. The portfolio of opportunities available to Avid includes 17 exploration prospects, two development projects, an increasing number of assets available for acquisition, and corporate mergers. Avid is well positioned to take advantage of the opportunities the current market environment is providing. Operations ---------- During the first nine months of 1998, Avid participated in the drilling of fourteen wells (7.3 net), resulting in eight oil wells (2.9 net) and four gas wells (2.8 net). Avid also completed four acquisitions providing 20 boepd of net production and 1,210 net acres of land for a total cost of $353,000. During the first nine months of 1998, Avid's average production rate was 140 boepd, and by the end of September the Company was producing 240 boepd (144 bpd of oil, and 960 mcfd of gas). During the third quarter, Avid completed drilling three OO pool infill wells, one gas well in the Peace River Arch, and two dry and abandoned wells. The pipeline tie-in of the OO pool oil wells was completed in this quarter, along with the tie-in of one of the gas wells, and the recompletion and testing of two additional gas wells. Presently, Avid has an inventory of four shut-in gas wells, and arrangements are being made to bring this production on stream in time for the winter heating season. Avid expects these wells to add 800 mcfd of net production to the Company. Financial --------- Prior to 1998, Avid's expenses, net of revenues, were included in property, plant and equipment so comparative quarterly information is not presented. For the nine months ended September 30, 1998, the Company recorded gross production revenue of $624,750 and obtained an average sales price of $15.76 per barrel of crude oil and $2.07 per mcf of natural gas for a combined price of $16.36 per barrel of oil equivalent (boe). Royalty expenses were $58,600 or 9% of production revenue as a result of ARTC and royalty holidays, while production costs were $238,253 or $6.24 per boe. Other income of $107,913 consisted primarily of interest income on the cash balance of $1,867,678 at period end. Depreciation and depletion charges against income were $320,207 while the general and administrative expenses were $372,434 for the period. This has resulted in a net loss for the nine months of $256,831 or $0.02 per share (basic), but positive cash flow of $63,376. Despite low product prices, Avid averaged a field net back of $8.59 per boe. Capital expenditures for the period were $3,759,412 and Avid still enjoys a working capital surplus of $1,923,268 to fund future capital expenditures and ongoing operations. Outlook ------- The drilling activity in the first half was mainly derived from the Neutral Hills 3D program shot in September of 1997. The overall results have been very rewarding, but the most exciting aspect of this activity is a significant extension to the OO Pool in Consort. The three wells drilled into this pool in the first quarter of 1998 encountered net pay intervals ranging from 8m to 17m, and gross initial production rates ranging from 70 bpd to 250 bpd. Avid proceeded to drill three infill locations in July, and two additional locations await production performance results of these wells. It is estimated that this pool contains 750,000 bbls (225,000 net) of remaining recoverable oil under primary recovery. In addition to this development activity, Avid has assembled a portfolio of twelve exploration plays in the Consort area. Avid has successfully negotiated land deals for all of these prospects, and plans to drill these wells during the next six months. With the exploration and development program under way in Consort, Avid is continuing to pursue the development of a second core area in the Peace River Arch. In July, Avid participated with a major producer in this area and drilled a Gething gas well, earning four sections of land (40% working interest). At an October crown land sale, Avid purchased another section of land in this area (80%), and recently Avid reached an agreement with a major industry participant for a six section farmin. Avid's total position in the Peace River Arch currently stands at 8 sections (4.5 net sections) of land with five prospects. Management expects to test two or three of these prospects during the next six months. In addition to this exploration activity, Avid will continue to pursue significant asset acquisitions and corporate merger combinations that will provide development upside and a larger portfolio of opportunity for future investment and growth. As the oil and gas sector continues to weather a severe erosion of oil prices, and a period of consolidation and retrenchment continues, Avid Oil & Gas Ltd. is in the enviable position of having a strong balance sheet with positive cash flow and a positive of working capital. This position enables Avid to carefully select opportunities to pursue, exploration, development, acquisition, or merger, which will add the most value over the long term for our shareholders.

To: SofaSpud who wrote (12913)	10/29/1998 3:43:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Canadian Occidental Petroleum Announces New Exploration Blocks in Yemen CALGARY, Oct. 29 /CNW/ - Canadian Occidental Petroleum Ltd. (CXY-TSE, ME, AMEX) announced today that it has entered into a Memorandum of Understanding with the Government of Yemen to acquire interests in four large exploration blocks in northeastern Yemen. The four blocks - Blocks 11, 12, 36 and 54, are contiguous, cover an area of 12 million acres and are located in an underexplored frontier area. CanadianOxy plans to conduct exploration activities on these blocks to identify prospective drilling locations. CanadianOxy is the operator of all four blocks. CanadianOxy is continuing to expand its portfolio of assets in Yemen. Earlier this year, we acquired an interest in two exploration blocks in Yemen - Blocks 50 and 51. With the addition of four new blocks, our gross exploration acreage is now over 20 million acres. We also have a 52 per cent interest in the Masila Block (Block 14). Since 1991, almost 800 million barrels of oil have been discovered on this block and over 300 million barrels have been produced. During the past eighteen months, proved and probable reserves have increased 20 per cent while gross production has increased 11 per cent to over 200,000 barrels per day. As operator, we are aggressively expanding the Masila exploration and development program to fully exploit this world class asset. Commenting on the new blocks, Victor Zaleschuk, President and CEO said, ''Our objective in Yemen is to continue to build on our significant successes with continued growth well into the future. The addition of four new exploration blocks to our exploratory acreage gives us the largest exploratory land position in Yemen. This portfolio, in combination with our Masila Block, will undoubtedly enable us to achieve this growth for many years to come.'' CanadianOxy is an independent, Canadian-based global energy and chemicals company. Core business activities include the exploration, development, production and marketing of crude oil and natural gas and the manufacture and marketing of industrial chemicals. CanadianOxy is one of Canada's largest oil and gas producers with daily production of approximately 240,000 barrels of oil equivalent.

To: SofaSpud who wrote (12913)	10/29/1998 3:46:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. NOTICE / Jet Energy Corp. - Company Director Resigns CALGARY, Oct. 29 /CNW/ - ---------------------------------------------------------------------- TSE Symbol: JEC Listed Standard & Poor's Manual OTC Bulletin Brd. Symbol: JECXF Issued and Outstanding Shares: 22,374,576 ---------------------------------------------------------------------- Jet Energy Corp. (''Jet Energy'') wishes to announce that Mr. Gary Schell has resigned as a director of the Company effective October 20, 1998. Jet Energy wishes to thank Mr. Schell for his very significant contributions to the establishment and growth of Jet Energy. Jet Energy Corp., headquartered in Calgary, is an active oil and gas producer growing through exploration activities.

To: SofaSpud who wrote (12913)	10/29/1998 3:49:00 PM
From: Kerm Yerman	Respond to of 15196

ASE-JCP MAJOR TRANSACTION / GEOCAN Energy Inc. Announcement GEOCAN ENERGY INC. GAINS APPROVAL OF ITS MAJOR TRANSACTION CALGARY, ALBERTA-- * GEOCAN Energy Inc. (the "Corporation") is pleased to announce that the Corporation has received approval from its shareholders to acquire 100% of the oil and gas assets of Timberwolf Production Fund #4 Limited Partnership in the Carson Creek producing natural gas property. The acquisition will constitute the Corporation's Major Transaction in accordance with rules of The Alberta Stock Exchange. Unanimous approval was granted by the unrelated shareholders attending its annual and special meeting on October 29, 1998. * Following the filing of final documentation with the ASE, GEOCAN will no longer be considered a Junior Capital Pool company. The effective date of the transaction is July 1, 1998. Cashflow will accrue to the Corporation for the period July 1st to October 29th, 1998. * In conjunction with the approval of the Major Transaction, the shareholders of the Corporation have: * re-elected the current board of directors for another term; * re-appointed Davis, Daignault, Schick & Co. as auditor of the Corporation; * approved the Corporation's stock option plan; and, * authorized further equity issuances of up to 3,833,000 common shares through one or more private placements during the next 12 months. The officers responsible for the issuance of this press release and who may be contacted for further information are: