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To: SofaSpud who wrote (12940)	10/21/1998 8:41:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Harbour Petroleum Commences Legal Action TSE SYMBOL: HRP OCTOBER 21, 1998 CALGARY, ALBERTA--Harbour Petroleum Company Limited announces today that it has commenced an action against TransCanada Energy Ltd. ("TransCanada") for breach of contract, breach of confidentiality and breach of the duty of good faith and fair dealing. This action is the result of TransCanada bringing an ex-parte application before a Registrar in Bankruptcy in Calgary and obtaining an Order appointing an Interim Receiver to oversee Harbour's transactions and operations and also filing a Petition for receiving order on October 13, 1998. On October 16, 1998, Harbour filed a motion to set aside the appointment of the Interim Receiver and filed an Objection to the Petition for receiving order, for hearing on October 20, 1998. The Registrar in Bankruptcy adjourned the matter to December 14, 1998, for hearing before a Justice of the Court of Queen's Bench (Alberta). Harbour's action claims damages of $380,000.00 for amounts owed under the contract to it, special damages in an amount to be determined, punitive damages of $1,000,000.00 and general damages of $1,000,000.00 for loss of corporate opportunity, loss of reputation and loss of business opportunity as a consequence of the actions taken by TransCanada. Harbour intends to carry on in the ordinary course of business pending the hearing on December 14, 1998. Commenting on the actions of TransCanada, Robert G. Atkinson, President of Harbour stated "These actions will prevent Harbour from pursuing a number of specific transactions to enhance shareholder value and protect the interest of all parties. TransCanada has followed a course of action, which was high-handed and premature, particularly when Harbour was dealing in good faith with TransCanada Energy to settle the contract dispute". Harbour Petroleum Company Limited has 27,882,847 outstanding common shares and is listed on The Toronto Stock Exchange - symbol HRP.

To: SofaSpud who wrote (12940)	10/21/1998 8:45:00 PM
From: Herb Duncan	Read Replies (8) \| Respond to of 15196

FINANCE / Deena Energy Announces Update on October 20th News Release ASE SYMBOL: DNG OCTOBER 21, 1998 CALGARY, ALBERTA--Deena Energy Inc. announces that further to the press release of October 20, 1998, the time period for repayment of the bank loan has now been extended to the close of business on October 26, 1998. Deena Energy Inc. continues to review alternatives in order to restructure the company. Deena Energy Inc. is a Canadian oil and gas company listed on the ASE under the trading symbol, DNG.

To: SofaSpud who wrote (12940)	10/21/1998 8:49:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY DISPOSITION / CORDEX Petroleums Inc. - Company Announcement TSE SYMBOL: CZX.A OCTOBER 21, 1998 DENVER, COLORADO--CORDEX Petroleums Inc. announces that the closing date for the completion of the sale of the Fell Block oil and gas concession held by CORDEX, certain assets of CORDEX Petroleums Inc. (USA) and 100 percent of the shares of CORDEX Petroleums Argentina Ltd. to Gener S.A. has been extended to a date not later than December 4, 1998 by agreement between the parties, subject to the receipt of certain third party approvals. The closing has been rescheduled to permit additional time to satisfy certain conditions to closing. CORDEX has arranged with Bankers Trust and Anstalt fur Montanbedarf for loans totaling US $800,000. The funds are to be used to meet the company's financial needs up to the time of closing.

To: SofaSpud who wrote (12940)	10/22/1998 5:44:00 AM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

MISC. EARNINGS / Methanex reports increased sales and reduced costs in difficult market VANCOUVER, Oct. 21 /CNW/ - Methanex Corporation recorded a net loss of US$20.8 million ($0.12 per share) for the third quarter ended September 30, 1998. This result is better than the analyst consensus largely due to insurance recoveries. Pierre Choquette, President and CEO of Methanex, commented, ''In July our outlook was for stronger sales in the second half of the year. This has been borne out by our third quarter results, which show a sales volume increase of 25% over the second quarter.'' Mr. Choquette continued, ''We had sought to substantially increase our plant operating rates from 70% in the second quarter, and we have also achieved this target, averaging 85% for the third quarter. Increased capacity utilization reduces costs, and in both August and September we met our strategic cost target, recording the best cost performance in the history of Methanex.'' Mr. Choquette also remarked, ''These operating improvements were, unfortunately, largely offset by lower methanol pricing in what continues to be a challenging period for our industry.'' Mr. Choquette concluded, ''We remain on schedule to complete our third plant in Chile early next year, delivering further cost reduction, as the next step in our long-term low-cost strategy.'' The 1998 third quarter result compares to a loss of US$28.1 million (US$0.16 per share) for Q2'98 and earnings of US$50.2 million (US$0.27 per share) for Q3'97. The fourth quarter contract methanol price in Europe has been settled at DM195 per tonne, which was equivalent to US$116 per tonne (US$0.35 per gallon) at the time of contract settlement, and is a slight improvement over the third quarter price (in US$ terms). Contract pricing in the US Gulf Coast has remained flat in the vicinity of US$0.34/gallon (US$113/tonne), while spot pricing in this region has remained at approximately US$0.30/gallon (US$100/tonne). Excess methanol supply and volatile US Gulf Coast natural gas pricing continue to put pressure on methanol pricing. Methanex's financial position remains strong with approximately $333 million in cash and $387 million in undrawn credit facilities at the end of Q3'98. The Company had repurchased almost 2.2 million shares by the end of September under its normal course issuer bid, leaving approximately 173.5 million shares outstanding. Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol. Methanex shares are listed for trading on the Toronto and Montreal stock exchanges in Canada under the trading symbol ''MX'' and on The NASDAQ Stock Market in the United States under the trading symbol ''MEOHF.'' A conference call is scheduled for Thursday, October 22 at 10:30am EST (7:30am PST) to review these second quarter results. Access to the call may be obtained by calling the Confertech operator at 416-620-7013 ten minutes prior to the call. A post-view version of the conference call will be available until October 28 at 416-626-4100 (reservation No.860326), and thereafter on our Shareholder Direct line at 1-800-64-MEOHF (-63643) or on our web site at www.methanex.com. Interim Report to Shareholders For the nine months ended September 30, 1998 At September 30, 1998, the number of common shares outstanding was 173,460,048. Contact Information Methanex Investor Relations 1800 - 200 Burrard Street Vancouver, BC Canada V6C 3M1 Share Information Methanex Corporation's common shares are listed for trading on the Toronto and Montreal exchanges under the symbol MX and on The NASDAQ Stock Market under the symbol MEOHF. Transfer Agents & Registrars CIBC Mellon Trust Company 393 University Avenue, 5th Floor Toronto, Ontario, Canada M5G 2M7 Toll free in North America: 1-800-387-0825 Investor Information All financial reports, news releases and corporate information can be accessed on the Internet on our website or by calling our toll free investor line. E-mail: invest@methanex.com Internet: methanex.com Methanex Shareholder Direct line: 1-800-64-MEOHF 1-800-646-3643 Message to Shareholders ----------------------- Except where otherwise noted, all currency amounts are stated in United States dollars. Results from Operations ----------------------- For the nine months ended September 30, 1998, Methanex recorded a net loss of $46.7 million ($0.27 per share) compared with net earnings of $165.5 million ($1.58 per share) for the same period in 1997. The decrease in earnings was principally due to lower methanol prices. The average realized price for the nine months ended September 30, 1998 was $126 per tonne compared with $188 per tonne for the corresponding period in 1997. Methanex's net loss for the third quarter of 1998 was $20.8 million ($0.12 per share) compared to a net loss of $28.1 million ($0.16 per share) for the second quarter of 1998. The loss from operations was $25.9 million in the third quarter of 1998 compared to a loss from operations of $35.6 million in the second quarter of 1998. The improvement in earnings was principally due to lower costs as a result of higher production volumes, and an insurance settlement. These favourable factors were partially offset by a decline in the average realized methanol price. In the third quarter, Methanex sales volumes were strong at 1.7 million tonnes. This represented an increase of 330,000 tonnes over the second quarter of 1998 and approached the record levels achieved during 1997. In support of stronger sales, Methanex increased production during the third quarter. Methanex increased its production to 1.3 million tonnes from 1.0 million tonnes in the second quarter. The higher utilization of our plants in combination with lower natural gas costs resulted in the lowest unit costs ever achieved by Methanex. The average realized methanol price in the third quarter of 1998 was $107 per tonne compared to $114 per tonne in the second quarter of 1998. Prices were lower in Asia and Europe but remained stable in North America. Value Creation Initiatives -------------------------- Construction of Methanex's low-cost third plant in Chile (Chile III) is progressing on budget and commercial production is expected to commence as planned by the end of the first quarter of 1999. In New Zealand, new natural gas exploration and development is continuing and it is expected that new reserves will be confirmed in the near future. Methanex is in discussions with natural gas suppliers to secure additional large volumes of low cost gas for its New Zealand plants. Liquidity and Capital Projects ------------------------------ Cash generated from operations before changes in non-cash working capital for the third quarter of 1998 was $11.0 million compared with cash used in operations of $2.6 million in the second quarter of 1998. The higher cash generation was due to lower unit costs. During the third quarter of 1998, cash construction costs for Chile III were $44 million and costs to complete the project are estimated to be approximately $125 million. As of September 30, 1998, Methanex had repurchased 2.2 million shares at an average price of C$11.20 under a normal course issuer bid which allows Methanex to repurchase up to 10.7 million shares. Methanex continues to have excellent financial strength. The cash balance at September 30, 1998 was $333 million and the Company has undrawn credit facilities of $387 million. Methanex's financial capacity is sufficient to complete the construction of Chile III and pursue other projects that will enhance its global position in methanol. Short-term Outlook ------------------ Recent capacity additions and lower demand in Asia have contributed to a weak methanol price environment. The capacity additions, however, have fully impacted the market and the next supply increment will be Methanex's Chile III in 1999. In the current price environment many methanol producers are experiencing negative cash margins and adjustments in the industry will be required. The price of methanol will ultimately depend on the strength of global demand, industry operating rates and the actions of high-cost producers in regions such as the United States, Europe, Russia and China. The Company's strong financial position, global supply network and low cost position will ensure that Methanex continues to be the leader in the methanol industry.

To: SofaSpud who wrote (12940)	10/22/1998 5:49:00 AM
From: Kerm Yerman	Respond to of 15196

CORP. NOTICE / Hurricane Hydrocarbons Selects Financial Advisors CALGARY, Oct. 21 /CNW/ - The Board of Directors of Hurricane Hydrocarbons Ltd. announced today that Hurricane has engaged Donaldson, Lufkin & Jenrette (DLJ) as financial advisors. DLJ will be working with the Independent Directors' Committee chaired by the Honourable Robert P. Kaplan who also holds the position of Chairman of the Board. The objective of the advisors, the Directors' Committee and Hurricane's management will be to pursue strategic, long-term alternatives which will maximize shareholder value. ''The directors and management of Hurricane were able to proceed quickly with this decision,'' said Mr. Kaplan, ''because of the preparatory work done by John Komarnicki, the company's former president and CEO.'' DLJ is a leading international investment bank headquartered in New York which has worked closely with Hurricane for the past 15 months. Hurricane is an independent international energy corporation engaged in the acquisition, exploration and production of oil, primarily in the Republic of Kazakhstan. The corporation's shares are listed on The Alberta Stock Exchange, The Toronto Stock Exchange (TSE) under the trading symbol HHL.A and are quoted for trading on The Nasdaq National Market under the symbol HHLAF. Hurricane is a member of the TSE 300 and TSE 200 Composite Indexes.

To: SofaSpud who wrote (12940)	10/22/1998 5:56:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Crestar Energy Reports 1998 Third Quarter Results - Best Quarter This Year CALGARY, Oct. 21 /CNW/ - The third quarter of 1998 was Crestar's best quarter this year. Revenue and cash flow both improved from the previous two quarters, fueled by higher natural gas prices and narrowing crude oil price differentials. Production volumes climbed to 90,500 BOE/d for the first nine months of 1998, 20% higher than a year ago. Third quarter volumes averaged 86,600 BOE/d, up six percent from a year ago, but four percent lower than the second quarter of 1998, mainly the result of asset dispositions. Despite these improvements, Crestar's liquids prices year to date fell short of last year, resulting in lower revenue, cash flow and earnings levels relative to the comparable periods in 1997. OUTLOOK ''As we head into the last quarter of 1998, we have every reason to be optimistic. Natural gas prices are approaching all time highs and, given the slower rate of supply development and completion of several critical pipeline projects, they could remain high for some time. Oil price realizations, while still lagging behind 1997 levels, have improved noticeably since the first quarter - particularly for the medium to heavy stream. Our balanced approach to our exploration and development program has given us the opportunity to participate in the developing gas story. Through the last four months of this year we expect to add approximately 90 mmcf/d of new production taking our volumes to about 440 to 450 mmcf/d by the end of the year. With the high prices currently available, we have chosen to protect our cash flow during the active winter drilling season by fixing prices on approximately 200 mmcf/d for the fourth quarter of this year and the first quarter of next year. Field realizations for these volumes will be greater than C$2.50 per mcf. As for liquids, we previously reported that poor realizations for the heavy portion of our liquids stream have caused us to withhold capital from heavy oil development through most of this year. This does not mean that we have stopped work on this portion of our asset base. We have continued to purchase significant blocks of undeveloped land and today we have 'on the shelf' an inventory of approximately 150 development and extension locations along with 20 to 30 exploration opportunities waiting for the appropriate price environment. That time may not be far off. Notwithstanding a drop in WTI prices, the change in the Canadian dollar along with reduced heavy oil differentials and diluent costs have substantially increased field prices. Realizations for our Jenner crude have improved from an average of C$8.78 per barrel in January to C$15.66 per barrel on a spot basis for the first part of October. As was the case for our natural gas production, we have chosen to lock in the heavy oil differential for a portion of our Bow River stream. Through direct arrangements with some of our customers we have fixed the WTI to Hardisty differential on 6,000 bbls/d of Bow River blend for calendar 1999 at US$3.25 per barrel. This represents a little over 10% of our entire crude stream at these historically low differentials. Along with most of the industry, our share price has suffered in recent months as a result of low oil prices. However, with strengthening gas prices, the potential effect of even a slight recovery in oil prices on our cash flow and debt ratios is very noticeable. Our website contains a sensitivity analysis that shows this data. We believe our optimism is well founded and are looking forward to a stronger fourth quarter and a stronger 1999.'' Barry Jackson, President and Chief Executive Officer. NATURAL GAS SALES For the nine months ended September 30, 1998, Crestar's natural gas sales averaged 408 mmcf/d, 20% higher than the same period last year. Natural gas realizations averaged $1.89 per mcf, up three percent from a year ago. Natural gas sales in the third quarter of 1998 averaged 388 mmcf/d, five percent higher than a year ago and six percent lower than the second quarter of 1998, mainly attributable to asset sales completed in the third quarter. Average realizations in the third quarter were $1.90 per mcf, 15% higher than the third quarter of 1997 and down four percent from the second quarter this year. CRUDE OIL AND NATURAL GAS LIQUIDS SALES Average crude oil and liquids production for the first nine months of 1998 rose 19% to 49,700 bbls/d. Liquids volumes for the third quarter averaged 47,800 bbls/d, six percent higher than last year, but two percent lower than the preceding quarter, as we continue to defer heavy oil development and remedial work needed to maintain our oil volumes. Crestar's liquids realizations in the first nine months of 1998 fell 39% to average $12.63 per barrel. The decline in the base WTI benchmark crude oil price, wide price differentials between WTI and Crestar's heavier blends of crude and higher costs for condensate used as diluent for heavier grades of crude contributed to the drop in average liquids realization. While third quarter realizations, at $14.77 per barrel, continued to reflect low WTI prices, they also showed significant improvement over the first half of 1998. Of particular importance, Crestar's crude price differential dropped by about $4.38 per barrel, a 42% improvement from the preceding quarter, as sharp declines in heavy crude production caused refiners to increase posted prices compared to light production and diluent premiums declined. EXPLORATION AND DEVELOPMENT Our focus on natural gas development in 1998 will be reflected in increasing volumes during the fourth quarter. By year end, we expect to bring on stream new production of approximately 90 mmcf/d of natural gas and 4,000 bbls/d of liquids. During the third quarter, we brought on stream two natural gas wells in the Wembley area, adding approximately 7 mmcf/d of new production. In the fourth quarter, we will tie-in three new wells and install additional field compression feeding in to our Wembley plant. This activity will add approximately 10 mmcf/d of natural gas production by the end of 1998. In the third quarter, we drilled three gas successes identified from large 3-D seismic programs at Greencourt and Whitecourt. Tie-ins and additional drilling will add approximately 10 mmcf/d of natural gas production in the Paddle River area during the fourth quarter. At Fir, adjacent to Paddle River, we drilled two natural gas extension wells to prove the aerial extent of our 1997 exploration success. We have encountered four productive horizons in the area and expect that production from Fir will reach 10 mmcf/d by year end. We see further potential to develop this property. Activity in the Eckville area included an exploration success at Sunchild, along with five natural gas successes and three uphole recompletions at Medicine River and Hoadley. The wells will be tied-in during the fourth quarter, contributing 20 mmcf/d of natural gas production. During the third quarter, we tied-in 50 shallow gas wells at Cessford. This program has expanded the aerial extent of the pools and we have identified opportunities for a program of similar size in 1999. We also drilled five deeper Glauconite gas wells in the Cessford area during the third quarter, four of which are already on stream. At Jenner, we have identified uphole gas potential in some older suspended wells and are installing new field compression. While the Jenner/Cessford area is considered to be one of our main heavy oil areas, we currently produce approximately 50 mmcf/d of natural gas from this area and should add volumes of 10 mmcf/d by year end. At Vulcan, we tied in four natural gas wells during the third quarter and drilled an exploration well that encountered significant volumes of natural gas in the Turner Valley formation. Along with field compressor installation planned for the fourth quarter, these wells will feed an additional 9 mmcf/d into our Vulcan gas plant. Gas well drilling at Dalemead/Gladys and oil well drilling at Grand Forks will deliver an additional 6 mmcf/d of natural gas and 1,700 bbls/d of crude oil by year end. ASSET MANAGEMENT Crestar maintains an ongoing asset management program to increase its interest in core areas and dispose of non core properties. In the third quarter of 1998, six non core property sales were finalized, for net proceeds of $23.6 million, resulting in total dispositions of $43.3 million for the nine month period. During the fourth quarter, we expect to close the sale of a further $7 million in non core assets in transactions already underway. CORPORATE On September 10, 1998, Crestar commenced a Normal Course Issuer Bid to purchase for cancellation up to 5% of its outstanding shares. To date, as a result of improving trading prices since the announcement, Crestar has not made any purchases pursuant to the issuer bid. We are pleased to announce the appointment of Mr. Brian Lemke as Senior Vice President, Finance and Chief Financial Officer. A Chartered Accountant, Brian brings more than 17 years of oil and gas experience to Crestar. He takes over from Jim Smith, who left the Company on October 1, 1998. The Board, management and staff of Crestar express sincere appreciation to Jim for his valuable contribution to the Company since its inception in 1992. We are also pleased to announce the promotion of two of Crestar's key executives. Mr. Dan Bailie has been appointed Senior Vice President and Chief Operating Officer, Domestic Operations and Mr. Ken West has been appointed Senior Vice President, New Ventures and Strategic Development, in addition to his role as President and Chief Operating Officer of Crestar Energy International. These changes enable us to fully integrate our exploration, development and production operations and will enhance our ability to plan and execute our strategy for long term growth. << NET CAPITAL EXPENDITURES ------------------------------------------------------------------------ Three months ended Nine months ended September 30 September 30 ($ millions) 1998 1997 1998 1997 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Lease acquisitions and rentals 3.7 6.7 13.7 36.4 Geological and geophysical 2.1 7.0 25.6 41.3 Exploration drilling 17.1 31.4 79.1 91.0 Development drilling 10.1 20.6 38.6 49.1 Plant and production facilities 17.7 23.6 83.5 50.3 -------------------------------------- Expenditures relating to exploration and development activity 50.7 89.3 240.5 268.1 Acquisitions 0.6 417.7 5.0 427.8 -------------------------------------- 51.3 507.0 245.5 695.9 Other (0.3) 1.4 4.3 4.4 -------------------------------------- 51.0 508.4 249.8 700.3 Proceeds from dispositions (23.6) (5.4) (43.3) (18.3) -------------------------------------- Net Capital expenditures 27.4 503.0 206.5 682.0 ------------------------------------------------------------------------ ------------------------------------------------------------------------ 1998 NINE MONTHS DRILLING SUMMARY ------------------------------------------------------------------------ Net Success Rate (net wells) Oil Gas Dry Total 1998 1997 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Exploratory 16 53 56 125 55% 41% Development 27 45 10 82 88% 93% -------------------------------------------- Total 43 98 66 207 68% 64% ------------------------------------------------------------------------ ------------------------------------------------------------------------ HIGHLIGHTS ---------- Three months ended Nine months ended September 30 September 30 ------------------------------------------------------------------------ 1998 1997 1999 1997 ------------------------------------------------------------------------ FINANCIAL (millions of dollars, unless otherwise indicated) Revenue 132.7 135.6 382.1 404.8 Net income (loss) (9.3) 2.3 (39.9) 28.1 Per share (dollars) Basic (0.16) 0.05 (0.70) 0.56 Fully diluted (0.16) 0.05 (0.70) 0.55 Cash flow from operations 57.7 69.0 156.3 205.1 Per share (dollars) Basic 1.00 1.34 2.75 4.11 Fully diluted 0.95 1.29 2.63 3.96 Net capital expenditures, including acquisition 27.4 503.0 206.5 682.0 Long term debt at period end 738.3 749.3 738.3 749.3 Shareholders' equity 646.3 567.2 646.3 567.2 Shares outstanding (millions) At period end 57.9 52.4 57.9 52.4 Weighted average 57.9 51.3 56.9 49.9 ------------------------------------------------------------------------ ------------------------------------------------------------------------ OPERATING Net undeveloped land (thousands of acres) 3,169 3,591 3,169 3,591 Drilling activity (gross/net wells drilled) 48/41 205/174 259/207 451/388 Sales Natural gas (mmcf/d) 388 368 408 339 Liquids (1) (mbbls/d) 47.8 45.0 49.7 41.7 Equivalence (2) (mBOE/d) 86.6 81.8 90.5 75.6 Average realization Natural gas ($/mcf) 1.90 1.65 1.89 1.84 Liquids (1) ($/bbl) 14.77 19.25 12.63 20.58 Netback ($/BOE) Product revenue 16.65 18.01 15.47 19.61 Royalties 2.71 3.31 2.54 3.77 Operating expense 4.24 4.07 4.25 4.16 General and administrative expense 0.79 0.77 0.83 0.73 ------------------------------------- Operating netback 8.91 9.86 7.85 10.95 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) Liquids includes volumes of crude oil, natural gas liquids and condensate (2) Natural gas is converted to barrels of oil equivalent (BOE) at 10 thousand cubic feet (10 mcf) of gas per barrel CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS ----------------------------------- Three months ended Nine months ended September 30 September 30 ------------------------------------------------------------------------ (millions of dollars, except per share data) 1998 1997 1998 1997 ------------------------------------------------------------------------ REVENUES Petroleum and natural gas 132.7 135.6 382.1 404.8 Less: Royalties 21.6 24.9 62.7 77.8 -------------------------------------- 111.1 110.7 319.4 327.0 Other 0.6 2.1 1.8 3.9 -------------------------------------- 111.7 112.8 321.2 330.9 -------------------------------------- EXPENSES Operating 33.9 30.6 104.9 85.9 General and administrative 6.3 5.8 20.5 15.0 Interest on long term debt 13.3 9.4 36.6 21.6 Foreign exchange 2.1 0.4 4.3 1.0 Capital taxes 1.0 1.2 3.0 2.9 Depletion and depreciation 64.6 58.0 200.4 152.2 -------------------------------------- 121.2 105.4 369.7 278.6 -------------------------------------- Income (loss) before income taxes (9.5) 7.4 (48.5) 52.3 -------------------------------------- INCOME TAXES (RECOVERY) (1) Current (0.2) (3.3) (0.2) - Deferred - 8.4 (8.4) 24.2 -------------------------------------- (0.2) 5.1 (8.6) 24.2 -------------------------------------- NET INCOME (LOSS) (9.3) 2.3 (39.9) 28.1 Retained earnings, beginning of period 125.6 149.9 156.2 124.1 -------------------------------------- RETAINED EARNINGS, END OF PERIOD 116.3 152.2 116.3 152.2 -------------------------------------- NET INCOME (LOSS) PER SHARE Basic (0.16) $0.05 $(0.70) $0.56 Fully diluted (0.16) $0.05 $(0.70) $0.55 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) The difference between Crestar's actual income tax provision and the amount that would result from the application of statutory income tax rates is due primarily to the effect of non-deductible depletion arising from the acquisition of Grad & Walker Energy Corporation. CONSOLIDATED BALANCE SHEET -------------------------- September 30 December 31 (millions of dollars) 1998 1997 ------------------------------------------------------------------------ ASSETS Current assets 87.6 83.6 Property, plant and equipment 1,690.3 1,675.5 Other 44.0 18.8 ----------------------------- 1,821.9 1,777.9 ----------------------------- ----------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 92.0 111.9 Long term debt 738.3 746.4 Deferred income taxes 283.1 293.6 Deferred credits and other obligations 62.2 56.9 ----------------------------- 1,175.6 1,208.8 Shareholders' equity Share capital 530.0 412.9 Retained earnings 116.3 156.2 ----------------------------- 646.3 569.1 ----------------------------- 1,821.9 1,777.9 ------------------------------------------------------------------------ ------------------------------------------------------------------------ FINANCIAL RATIOS ---------------- The following financial ratios are provided in connection with the Company's continuous offering of medium term notes pursuant to the shelf prospectus dated September 19, 1997. ------------------------------------------------------------------------- Interest coverage on long term debt (times)(1) Net income(2) 0.4 Funds from operations(3) 5.9 Net tangible asset coverage on long term debt (times)(4) 2.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) The interest coverage ratios are calculated on a proforma basis for the year ended September 30, 1998. (2) Net income plus income taxes plus interest expense on long term debt, divided by interest expense on long term debt. (3) Funds from operations plus interest on long term debt, divided by interest on long term debt. (4) Total assets minus intangible assets and current and other liabilities, divided by long term debt based on the consolidated balance sheet of the Company as at September 30, 1998. ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOW ----------------------------------- Three months ended Nine months ended September 30 September 30 ------------------------------------------------------------------------- (millions of dollars, except per share data) 1998 1997 1998 1997 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income (loss) (9.3) 23 (39.9) 28.1 Add (deduct) items not involving cash: Depletion and depreciation 64.6 58.0 200.4 152.2 Deferred income taxes - 8.4 (8.4) 24.2 Other 2.4 0.3 4.2 0.6 --------------------------------------- Cash flow from operations 57.7 69.0 156.3 205.1 Net changes in working capital, excluding cash (3.1) 14.3 (21.2) 21.1 Deferred revenue drawdowns - (0.1) (0.2) (0.2) --------------------------------------- 54.6 83.2 134.9 226.0 --------------------------------------- FINANCING ACTIVITIES Net issue (repayment) of long term debt (20.2) 338.1 (38.8) 347.8 Issue of common shares 0.1 80.6 115.0 84.0 Increase (decrease) in other liabilities - (0.1) - 1.3 --------------------------------------- (20.1) 418.6 76.2 433.1 --------------------------------------- Cash available for investing activities 34.5 501.8 211.1 659.1 --------------------------------------- INVESTING ACTIVITIES Net corporate assets acquired - 411.7 - 411.7 Expenditures on property, plant and equipment 51.0 96.7 249.8 288.6 Proceeds from disposition of property, plant and equipment (23.6) (5.4) (43.3) (18.3) Expenditures on abandonment and restoration 1.1 2.4 2.1 4.8 Decrease in other assets (0.2) (2.1) (0.3) (0.9) --------------------------------------- 28.3 503.3 208.3 685.9 --------------------------------------- INCREASE (DECREASE) IN CASH(1) 6.2 (1.5) 2.8 (26.8) Cash, beginning of period (4.0) (11.2) (0.6) 14.1 --------------------------------------- CASH, END OF PERIOD 2.2 (12.7) 2.2 (12.7) --------------------------------------- Cash flow from operations, per share Basic $1.00 $1.34 $2.75 $4.11 Fully diluted $0.95 $1.29 $2.63 $3.96 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Cash is comprised of cash, short term investments and short term bank indebtedness

To: SofaSpud who wrote (12940)	10/22/1998 6:01:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Union Pacific Resources Announces 68 Percent Production Volume Increase, Net Loss in Tough Price Environment FORT WORTH, Texas, Oct. 21 /CNW/-- Union Pacific Resources Group Inc. (NYSE: UPR) today announced a 68 percent increase, to 2,605MMCFED, in third-quarter daily production volumes, up from 1,550MMCFED for the same period last year. Discretionary cash flow was $242 million in the third quarter, down 14 percent from $284 million last year. Discretionary cash flow per share was $0.98, down 13 percent from $1.13 per share for the same period last year. The Company reported a net loss of $17 million compared to net income of $67 million in the third quarter of 1997. Earnings per share declined to a loss of seven cents a share, down from 27 cents a share a year earlier. UPR's financial performance was adversely affected by low prices for gas and oil in the quarter, and by high debt service levels associated with the Company's 1998 acquisition of Norcen Energy Resources Ltd. "Our entire industry is operating in difficult conditions -- crude oil prices are as low as they have been in half-a-century when adjusted for inflation. At the same time, we at UPR are digesting a major acquisition that will prove to be positive to the future of our company," Chairman and CEO Jack Messman said. "While some in our industry are struggling to survive, we have more than doubled our asset base, increased production by 68 percent this quarter, and are on track with our deleveraging program. That is a tribute both to the soundness of our strategy and to its execution by our employees. "Deleveraging is moving ahead," Messman added. "In addition to our announced upstream deals, including the Canadian sales announced yesterday, we have signed purchase/sales agreements on several others, and we are actively negotiating the properties not yet sold. We are on target with our plan to raise at least $600 million from the sale of non-core upstream assets by the end of the year." UPR announced in April a plan to raise $2 billion from its deleveraging program within 18 months. Bids are now in hand for the Company's downstream Gathering, Processing and Marketing (GPM) assets. The Company is optimistic that it can reduce the 18-month time frame for the deleveraging program. The third quarter earnings decline was attributable primarily to a $64 million increase in interest expense from debt incurred in the Norcen acquisition, along with a separate $43.4 million loss (a non-cash charge against earnings) caused by foreign currency exchange fluctuations related to the Canadian operation. Exploration expenses for the quarter were $20 million higher than in the same period last year, reflecting the addition of Norcen's exploration in offshore and international programs. The Company's average realized prices for the quarter were down 21 percent, which caused a pre-tax reduction in income of approximately $90 million. The sale of UPR's minority interest in the Gulf of Mexico's Matagorda Island properties in August contributed a pre-tax gain of $129.8 million. 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. This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties including planned construction and drilling activity, expected production efforts and volumes and budgeted capital expenditures and other risks and uncertainties detailed in the Company's SEC reports, including the report on Form 10-Q for the quarter ended June 30, 1998. Actual results may vary materially. Union Pacific Resources Group Inc. Statements of Income For the Period Ended September 30 (Dollars in Millions, Except Per Share Figures) Third Quarter % Nine Months % 1998 1997 Inc 1998 1997 Inc (Dec) (Dec) Operating revenues: Oil and gas operations: Producing properties $390.2 $292.2 $1,193.0 $966.8 Gathering, processing and marketing 83.7 105.0 299.6 319.4 Other oil and gas revenues 129.3 10.7 154.0 33.9 Total oil and gas operations 603.2 407.9 1,646.6 1,320.1 Minerals 38.8 41.1 115.5 105.2 Total operating revenues 642.0 449.0 43% 1,762.1 1,425.3 24% Operating expenses: Production 113.1 71.8 336.1 216.7 Exploration 79.0 58.6 229.6 150.6 Gathering, processing and marketing 64.6 66.3 193.2 195.6 Minerals 0.5 1.3 1.8 3.8 Depreciation, depletion and amortization 280.4 136.5 755.1 404.3 General and administrative 23.7 20.0 69.4 58.4 Total operating expenses 561.3 354.5 58% 1,585.2 1,029.4 54% Operating income 80.7 94.5 176.9 395.9 Other income (expense) - net (48.2) 8.7 (32.8) 9.6 Interest expense (77.8) (13.8) (195.3) (35.5) Income(loss) before income taxes (45.3) 89.4 (51.2) 370.0 Income taxes 28.0 (22.2) 47.8 (111.2) Net income(loss) ($17.3) $67.2 ($3.4) $258.8 Discretionary cash flow (1) $242.5 $284.4 $839.6 $881.7 Basic earnings(loss) per share ($0.07) $0.27 ($0.01) $1.03 Diluted earnings(loss) per share ($0.07) $0.27 ($0.01) $1.03 Discretionary cash flow per share $0.98 $1.13 $3.39 $3.51 Average shares outstanding (millions) basic 247.8 250.2 247.7 250.2 Average shares outstanding (millions) diluted 247.8 251.0 247.7 251.0 (1) Discretionary cash flow for any period means the sum of net income; depreciation, depletion and amortization; exploration expenses; and deferred taxes. Union Pacific Resources Group Inc. Operating Statistics For the Period Ended September 30 Third Quarter % Nine Months % 1998 1997 Inc 1998 1997 Inc (Dec) (Dec) Producing properties average daily production: Natural Gas: United States (MMcfd) 1,159.6 1,066.3 1,170.4 1,092.7 Canada (MMcfd) 323.9 19.5 275.1 17.8 Other International (MMcfd) 7.7 --- 7.4 --- Total (MMcfd) 1,491.2 1,085.8 37% 1,452.9 1,110.5 31% Natural Gas Liquids: United States(MBbld) 28.2 24.9 30.2 27.9 Canada (MBbld) 4.7 1.9 4.2 1.7 Total (MBbld) 32.9 26.8 23% 34.4 29.7 16% Crude Oil: United States(MBbld) 61.9 47.0 63.5 47.6 Canada (MBbld) 41.1 1.9 35.0 1.7 Heavy Oil (MBbld) 15.8 --- 13.7 --- Light Oil (MBbld) 25.3 1.9 21.3 1.7 Guatemala (MBbld) 24.6 --- 20.3 --- Venezuela (MBbld) 20.2 --- 15.3 --- Other International (MBbld) 5.0 1.8 4.0 2.0 Total (MBbld) 152.8 50.7 302% 138.1 51.3 169% Total production (MMcfed)2,605.2 1,550.5 68% 2,487.8 1,596.5 56% Producing Properties average sales prices: Natural Gas: United States (per Mcf) $1.73 $1.85 $1.91 $2.04 Canada (per Mcf) 1.25 1.18 1.29 1.66 Other International (per Mcf) 1.98 --- 1.39 --- Total (per Mcf) 1.63 1.84 (11%) 1.79 2.03 (12%) Natural Gas Liquids: United States(per Bbl) $7.43 $10.52 $8.39 $11.53 Canada (per Bbl) 6.59 3.67 5.78 5.07 Total (per Bbl) 7.31 10.05 (27%) 8.07 11.17 (28%) Crude Oil: United States(per Bbl) $12.43 $17.98 $13.23 $18.54 Canada (per Bbl) 8.73 20.24 8.99 19.88 Heavy Oil (per Bbl) 7.49 --- 5.45 --- Light Oil (per Bbl) 9.51 20.24 11.26 19.88 Guatemala (per Bbl) 7.66 --- 7.24 --- Venezuela (per Bbl) 9.16 --- 8.85 --- Other International (per Bbl) 13.75 16.06 12.14 17.43 Total (per Bbl) 10.28 18.00 (43%) 10.76 18.54 (42%) Total sales price (MMcfed) $1.63 $2.05 (21%) $1.75 $2.22 (21%) Total Company average costs: Production costs (per Mcfe) $0.47 $0.50 $0.49 $0.50 DD&A (per Mcfe) 1.08 0.82 1.03 0.80 General and administrative cost (per Mcfe) 0.09 0.12 0.09 0.11 Debt as a percent of total capitalization --- --- 73% 36% Union Pacific Resources Group Inc. Statements of Cash Flows For the Period Ended September 30 (Dollars in Millions) Third Quarter % Nine Months % 1998 1997 Inc 1998 1997 Inc (Dec) (Dec) Cash provided by operations: Net income(loss) ($17.3) $67.2 ($3.4) $258.8 Depreciation, depletion and amortization 280.4 136.5 755.1 404.3 Exploration expenses 79.0 58.6 229.6 150.6 Deferred taxes (99.6) 22.1 (141.7) 68.0 Discretionary cash flow 242.5 284.4 839.6 881.7 Working capital changes and other 22.1 (50.0) 158.5 (75.2) Cash provided by operations 264.6 234.4 998.1 806.5 24% Cash used by investing activities: Capital and exploratory expenditures (311.3) (367.2) (1,239.9) (1,010.3) 23% Acquisition of companies --- (179.4) (2,634.3) (179.4) Proceeds from sales of assets 211.8 17.4 262.1 22.3 Proceeds from sales of investments --- --- 48.4 --- Proceeds from settlement of contract --- --- 70.3 --- Other investing activities - net --- --- --- (6.4) Cash used by investing activities (99.5) (529.2) (3,493.4) (1,173.8) Financing activities: Dividends paid (12.4) (12.5) (37.2) (37.5) Debt financing(net) (165.3) 305.1 2,323.2 307.0 Purchase of treasury stock 0.5 (1.8) (22.1) (2.6) Other financings - net (48.1) 5.1 204.8 25.3 Cash provided (used) by financing activities (226.3) 295.9 2,468.7 292.2 Net change in cash and temporary investments ($61.2) $1.1 ($26.6) ($75.1) Union Pacific Resources Group Inc. Statements of Financial Position As of September 30 (Dollars in Millions) 1998 1997 Assets: Current assets $648.8 $482.2 Properties - net 8,457.5 3,532.2 Other assets 323.6 192.4 Total $9,429.9 $4,206.8 Liabilities and shareholders' equity: Current liabilities $954.6 $586.0 Debt due after one year 4,585.7 978.0 Deferred income taxes 1,735.3 502.0 Other liabilities 498.5 389.0 Shareholders' equity 1,655.8 1,751.8 Total $9,429.9 $4,206.8

To: SofaSpud who wrote (12940)	10/22/1998 6:05:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Player Petroleum Corporation Private Placement CALGARY, Oct. 21 /CNW/ - Player Petroleum Corporation (the ''Corporation'') wishes to announce that it has received regulatory approval for and has completed a private placement of 160,000 common shares at a price of $1.32 per share on a flow-through basis. The shares issued in connection with the private placement are subject to a hold period expiring October 21, 1999. The Corporation intends to use the proceeds of this offering to continue its ongoing exploration program. The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

To: SofaSpud who wrote (12940)	10/22/1998 6:09:00 AM
From: Kerm Yerman	Respond to of 15196

FUND ACTIVITY / Canadian 88 Energy Corp. Common Stock Purchased By Fidelity BOSTON, Oct. 21 /CNW/ -- Fidelity Management & Research Company (FMR), 82 Devonshire Street, Boston, Massachusetts, announced that certain open-end investment companies of which FMR serves as investment manager have in public transactions purchased Canadian 88 Energy Corp. common stock. The common stock purchased, together with previously acquired shares, represents 10.04% of the issued shares of such class. Fidelity fund purchases have been made for investment; the Fidelity funds may, subject to market conditions, make additional investments in or dispositions of securities of Canadian 88 Energy Corp. in the future. FMR does not, however, intend to acquire 20% of any class of the outstanding voting or equity securities of Canadian 88 Energy Corp.

To: SofaSpud who wrote (12940)	10/22/1998 6:16:00 AM
From: Kerm Yerman	Respond to of 15196

NEW LISTING / The Alberta Stock Exchange Bulletin - Shenandoah Resources Ltd. CALGARY, Oct. 21 /CNW/ - BULLETIN NO.: 9810 - 613 ORIGINAL LISTING SHENANDOAH RESOURCES LTD. The common shares of Shenandoah Resources Ltd. will be posted for trading at the opening of business on FRIDAY, OCTOBER 23, 1998. Stock Symbol: SNN ISM Security Code: 610 280 CUSIP Number: 82312N 10 0 Transfer Agent: Montreal Trust Company of Canada - Calgary Agent: Goepel McDermid Inc. Shenandoah Resources Ltd. has successfully completed its initial public offering of 10,000,000 common shares for total gross proceeds of $1,500,000. Shenandoah Resources Ltd. has 11,583,334 common shares issued and outstanding. Shenandoah Resources Ltd. is in the business of oil and natural gas exploration and development. The Company's contact for additional information is Mr. James R. Quillian, President, 950, 717 - 7th Avenue S.W., Calgary, Alberta, T2P OZ3. Telephone (403) 261-7705.