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

To: Kerm Yerman who wrote (13103)	10/29/1998 7:57:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Deena Energy - Loan Deadline Extended ASE SYMBOL: DNG OCTOBER 29, 1998 CALGARY, ALBERTA--Deena Energy Inc. announces that further to the press release of October 26, 1998, the time period for repayment of the bank loan has now been extended to the close of business on October 29, 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: Kerm Yerman who wrote (13103)	10/29/1998 8:02:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Mera Petroleums - Juniors Land Concession to Explore for Oil and Gas in South America ASE SYMBOL: MPR AND MILLENNIUM ENERGY INC. ASE SYMBOL: MLN OCTOBER 29, 1998 CALGARY, ALBERTA--Mera Petroleums Inc. and Millennium Energy Inc., two junior Calgary based oil and gas companies, have landed a major concession to explore for oil and gas in Colombia, South America. Mera president and CEO Robert McLeay and Millennium president and CEO Martin Hislop jointly announced at a press conference today that Colombian national oil company ECOPETROL has approved their joint proposal to explore for hydrocarbons on a 125,000 hectare (320,000 acre) tract of land located in the country's north-east Guajira department. "We're very excited," said McLeay. "It's our first step into the international exploration arena and we've managed to make it a very secure step. One gas well on the concession has already production tested at 15 mmcf/d and we're looking at several prospects with estimated reserves of 0.5 to 1 TCF." "This project has all the right elements for success," added Hislop. "The reserves in the basin are at Beaufort Sea levels, but will cost considerably less to find than in the Beaufort. A new pipeline has just been constructed through the middle of our concession." The concession is located in the desert region of the Guajira Peninsula, which is estimated to hold reserves comparable to those of the Beaufort Sea. ECOPETROL estimates the basin to hold 3.6 TCF of proven natural gas reserves and 1.5 billion barrels of oil in place. Gas reserves from one formation in the basin alone, the Siamana reef, are estimated to match those of Alberta's Caroline field. Over the past 20 years, companies like Texaco subsidiary TEXPET, ECOPETROL and Shell have successfully explored for natural gas in the Guajira Basin. Wells drilled by TEXPET in the Chuchupa, Ballena and Riohacha gas fields are currently producing 500 mmcf/d. "Three horizontal wells drilled by TEXPET in December 1996 are producing at 100 mmcf/d each," said McLeay, "about the same rate as the largest gas wells ever drilled in the U.S." Under the agreement with ECOPETROL, the Mera and Millennium joint venture is committed to spend approximately $2.1 million (US) in the first two years reprocessing seismic, shooting new seismic and/or drilling a horizontal well through an existing well bore. Success in this phase will lead to a comprehensive multi-year exploration and development program. The two companies' total investment over the first eight years of the program is estimated at $14 million (US). McLeay is optimistic about the markets for Colombian natural gas. "ECOPETROL is looking for producers to supply a new network of local gas distributors," he said. "And we're already in discussions with an international engineering consulting firm to use the gas produced from our wells as fuel for up to two co-generation power plants." Guajira Basin gas is currently selling for $1.23/mcf (US) or $1.90/mcf (Cdn). The Mera/Millennium concession comes on the heels of three major concessions granted to Amoco, Arco, Texas Petroleums and Shell for property offshore of the Guajira Peninsula in April of this year. The concessions totaled 10 million hectares and represent a commitment of $180 million (US) over the next two-to-three years.

To: Kerm Yerman who wrote (13103)	10/29/1998 8:06:00 PM
From: Herb Duncan	Respond to of 15196

PIPELINES / Pacific Northern Gas Announces 9 Month Results TSE, VSE SYMBOL: PNG.A TSE, VSE SYMBOL: PNG.PR.A OCTOBER 29, 1998 VANCOUVER, BRITISH COLUMBIA--Pacific Northern Gas Ltd. announced today net income for the first nine months of 1998 of $4.1 million, compared with $5.0 million for the corresponding period in 1997. After providing for preferred share dividends, earnings per common share in the first nine months of 1998 were $1.08 compared with $1.36 for the first nine months of 1997. Operating revenues in the first nine months of 1998 decreased to $51.8 million as compared with $56.4 million in the first nine months of 1997. The decrease in operating revenues and net income results primarily from lower residential and commercial sales caused by warmer than normal weather. Also, transportation revenues were lower than in the previous year, in large part because of lower delivery volumes to Skeena Cellulose and a shut down at the Methanex plant during September for the performance of planned maintenance. The Board of Directors declared a dividend of 28 cents per share on the Company's Class A and Class B common shares, payable December 21, 1998, to shareholders of record at the close of business on December 7, 1998, and a semi-annual dividend of 84.375 cents per share on the Company's 6-3/4 percent cumulative, redeemable preferred shares, payable January 1, 1999 to shareholders of record at the close of business on December 11, 1998. Headquartered in Vancouver, B.C., Pacific Northern Gas Ltd. (TSE: PNG.A/PNG.PR.A) owns and operates natural gas transmission and distribution systems. The Company's transmission line extends from the Westcoast Energy Inc. system north of Prince George to tidewater at Kitimat and Prince Rupert, and provides service to 12 communities and a number of industrial facilities. In the northeast, Pacific Northern's subsidiaries provide gas distribution service in the Dawson Creek, Fort St. John and Tumbler Ridge areas.

To: Kerm Yerman who wrote (13103)	10/29/1998 8:12:00 PM
From: Herb Duncan	Respond to of 15196

CORP / International Rochester Energy: William (Bill) A. Trickett Appointed President of Rochester TSE SYMBOL: ROH OCTOBER 29, 1998 VANCOUVER, BRITISH COLUMBIA--International Rochester Energy Corp. (the "Company") is pleased to announce that William (Bill) A. Trickett has been appointed a director and the President of the Company. Mr. Trickett was President and Chief Executive Officer of Morgan Hydrocarbons Inc., a publicly traded oil and gas company, from 1987 to 1996. Prior to 1987, Mr. Trickett was Senior Vice President of Operations with North Canadian Oils Ltd. In conjunction with this appointment, the Company intends to move its head office from Vancouver to Calgary. The Company has entered into a Management and Administrative Services Agreement with Mr. Trickett and Fogo Holdings Ltd. (a company controlled by him), which provides, among other things, that: 1. Fogo shall provide the services of Mr. Trickett and his executive assistant to the Company for an initial term of one year. 2. The Company has agreed to issue to Fogo: a. Warrants to purchase up to 449,000 shares at an exercise price of $0.37 per share exercisable for a period of two years. b. 151,000 shares, if the Company's aggregate net share of production from all sources is equal to or greater than an average of 250 barrels of oil equivalent per day for any consecutive thirty day period. c. an additional 150,000 shares, if the Company's aggregate net share of production from all sources is equal to or greater than an average of 500 barrels of oil equivalent per day for any consecutive thirty day period. d. an additional 150,000 shares, if the Company's aggregate net share of production from all sources is equal to or greater than an average of 750 barrels of oil equivalent per day for any consecutive thirty day period. The Agreement is subject to its acceptance for filing by The Toronto Stock Exchange, and the obtaining of other necessary regulatory and shareholder approvals. Mr. Trickett's appointment as a director and officer of the Company is conditional on the approval of The Toronto Stock Exchange. Philip Walsh, who has managed the acquisition and development of the Company's Colombian project as President for the past two years, has become Chairman of the Board. Mr. Walsh welcomes Mr. Trickett's appointment and states: "Management is delighted to have attracted an oil industry executive with such an outstanding proven track record as the new president of Rochester and we look forward to working with him in the coming months". D. William Campbell and Gary Liu have resigned as directors of the Company and Management wishes to thank them for their contribution to the Company over the last two years. International Rochester Energy is a Canadian based oil and gas exploration company and is participating in the exploration and development of the 210,000 acre Alcaravan Association Contract and the 32,000 acre Miradores Association Contract located in the Llanos Basin of Central Colombia. In March of 1997, Rochester announced that its first exploratory well (Estero #1) had made a significant new field discovery with initial test rates over 4,000 BOPD. An ongoing multi-well exploration and development drilling program is currently underway. The Company is also pursuing other, high potential, international oil and gas exploration opportunities.

To: Kerm Yerman who wrote (13103)	10/29/1998 9:55:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Alliance Energy Inc. Nine Months Report ALLIANCE ENERGY INC. - FINANCIAL RESULTS FOR THE NINE MONTHS ENDED AUGUST 31, 1998 CALGARY, ALBERTA-- Alliance Energy Inc. (Alberta Stock Exchange trading symbol "AEI") is pleased to provide the following information to its shareholders with respect to the financial results for the nine months ended August 31, 1998. Summary: 1998 1997 Change Gross oil & gas revenue 2,748,819 1,690,856 63% Operating expenses 937,397 804,565 17% General and administrative expense 117,333 178,154 (34%) Net Earnings 64,485 15,936 305% Net Earnings per Sham $0.00 $0.00 Funds from Operations 1,256,581 400,450 214% Funds from Operations per Share $0.08 $0.03 Production volume (BOE) 170,833 79,627 115% BOE/D 623 291 115% Oil Price (BOE) $16.09 $21.23 (24%) Netback after G & A (BOE) $7.48 $5.03 49% Shares outstanding at period 15,105,583 13,902,583 9% Despite the Company's production of 98% oil and the oil price averaging only $16.09/BOE for the first nine months ending August 31, compared to $21.23/BOE for the same period in 1997, Alliance has posted significant growth in production, revenue, cash flow, netback and earnings. Gross oil and gas revenue for the nine months ended August 31, 1998 has increased 63% from $1,690,856 in 1997 to $2,748,819 in 1998, because of the increased production by 115% from an average of 291 per BOE in 1997 to an average of 623 per BOE for nine months in 1998. This increase has more than offset the decline in the oil price. Net back after general and administration costs has increased from $5.03 per BOE to $7.48 per BOE even though there was a price decline of $5.14 per BOE. This was achieved by reducing the operating expenses from $10.10 per BOE to $5.49 per BOE, as high operating cost heavy oilwells were shut in and lower operating cost light oil wells were successfully drilled. General and administrative expenses for the nine months have also dropped from $178,154 in 1997 to $117,333 in 1998. Funds from operations for the nine months have increased 214% from $400,450 ($0.03/share) in 1997 to $1,256,581 ($0.08/share) in 1998 Earnings for the nine months increased from $15,936 in 1997 to $64,485 in 1998. Capital expenditure to date are $2,798,167 compared to $2,450,056 for last year. During the third quarter the Company drilled 3 wells. One development horizontal well at Ingoldsby (24% working interest) was placed on production in September at 300 barrels per day (72 net). One successful exploration well at Hassard Lake (100% working interest) has been cased as potential oilwell. One D & A exploration well at Gainsborough (100% working interest). Further horizontal wells at Ingoldsby are planned. Two hundred barrels per day of heavy oil production remain shut in, however, some heavy oil wells may be placed back on production in the fourth quarter. Please note: The Company has changed transfer agents from Montreal Trust to Olympia Trust. Fiscal Profit Profit Cash Flow Cash Flow Revenue YTD /Share /Share Nine months 1998 64,485 0.00 1,256,581 0.08 2,748,819 1997 15,936 0.00 400,450 0.03 1,690,856 1996 (170,889) (0.02) 241,248 0.03 1,535,865 Third Profit Profit/ Cash Flow Cash Flow/ Revenue Quarter Share /Share Three months 1998 (3,942) 0.00 394,960 0.02 821,972 1997 (32,746) 0.00 48,977 0.00 504,702 1996 (52,043) (0.01) 68,952 0.01 649,360 The information is provided by the management of the Company and neither The Alberta Stock Exchange or The Alberta Securities Commission has approved or disapproved this information. For further information Paul Cheung, President, Alliance Energy Inc., (403) 263-6220. Consolidated Balance Sheets (Unaudited) August November 1998 1997 $ $ ASSETS Current Assets Cash - 49,376 Accounts receivable 1,005,111 2,031,781 Prepaid expenses and drilling deposits 73,654 60,951 --------------------- 1,078,765 2,142,108 Investment 235,904 216,000 Capital assets 10,175,278 8,404,353 --------------------- 11,489,947 10,762,461 --------------------- LIABILITIES Current Liabilities Bank indebtedness 157,145 - Accounts payable 2,245,746 3,815,270 Long-term debt 60,000 140,000 --------------------- 2,462,891 3,955,270 --------------------- Long-term debt 3,190,000 1,690,000 Provision for site restoration costs 208,790 139,533 Deferred taxes 430,671 315,671 --------------------- 6,292,352 6,100,474 --------------------- SHAREHOLDERS' EQUITY Capital Stock 4,915,025 4,443,902 Retained earnings 282,570 218,085 --------------------- 5,197,595 4,661,987 --------------------- --------------------- 11,489,947 10,762,461 --------------------- Consolidated Income Statements For the Nine Months Ended (Unaudited) August August 1998 1997 $ $ REVENUE Oil and gas production 2,748,819 1,690,856 Royalties (416,293) (270,294) _________________________ Net production revenue 2,332,526 1,420,562 Royalty revenue 6,691 8,539 Equity in income of affilliate 19,404 28,517 Other income 89,622 - _________________________ 2,448,243 1,457,618 _________________________ EXPENSES Operating expenses 937,397 804,565 General and administrative 117,333 178,154 Interest 117,528 45,932 Depreciation, depletion & amortization 1,096,500 385,031 _________________________ 2,268,758 1,413,682 _________________________ Earnings before income taxes 179,485 43,936 ------------------------- Income Taxes Current - - Deferred 115,000 28,000 _________________________ 115,000 28,000 _________________________ Net earnings for the period 64,485 15,936 Retained earnings (deficit), beginning of period 218,085 (32,602) ------------------------- Retained earnings, end of period 282,570 (16,666) ------------------------- Net earnings per share $0.00 $0.00 ------------------------- Fully dilute earnings per share $0.00 $0.00 _________________________ Alliance Energy Inc. Consolidated Statements of Changes in Financial Position For the Nine Months Ended (Unaudited) August August 1998 1997 $ $ OPERATING ACTIVITIES Net earnings for the period 64,485 15,936 Items not affecting cash Depreciation, depletion & amortization 1,096,500 385,031 Equity income (19,404) (28,517) Deferred income taxes 115,000 28,000 --------------------------- Funds from operations 1,256,581 400,450 Net change in non-cash working capital (635,558) (621,370) ---------------------------- 621,023 (220,920) ---------------------------- FINANCING ACTIVITIES Net proceeds of issuance of common shares for cash 471,123 1,607,398 Issuance of long-term debt 1,500,000 1,020,000 ----------------------------- 1,971,123 2,627,398 INVESTING ACTIVITIES Capital assets expenditures (2,958,321) (2,771,553) Proceeds on sale of capital assets 160,154 321,497 Note receivable - (90,000) Investment (500) (70,000) ------------------------------ (2,798,667) (2,610,056) ------------------------------ Decrease in cash items for the year (206,521) (203,578) Cash, beginning of year 49,376 (52,365) ------------------------------- Cash, end of year (157,145) (255,943) ------------------------------- Funds from operations per share $ 0.08 $ 0.03 =============================== Fully diluted from operations per share $ 0.08 $ 0.03 =============================== Cash is comprised of: Bank indebtedness (157,145) (255,943) ==============================

To: Kerm Yerman who wrote (13103)	10/29/1998 10:03:00 PM
From: Kerm Yerman	Respond to of 15196

ASE BULLETIN / Del Roca Energy Inc. - DER CALGARY, Oct. 29 /CNW/ - BULLETIN NO.: 9810 - 637 AMALGAMATION AND SUBSTITUTIONAL LISTING DEL ROCA ENERGY INC. (DER) The common shares of Del Roca Energy Inc. will be halted from trading at the request of the Company at the opening of business on Monday, November 2, 1998 pending completion of its amalgamation. At a meeting held on October 9, 1998, the shareholders of each of Del Roca Energy Inc. and Tekerra Gas Inc. (VSE: TKG) approved an amalgamation by Plan of Arrangement. The name of the amalgamated entity will be DEL ROCA ENERGY LTD. Shareholders of Del Roca Energy Inc. will receive 0.29875 common shares of Del Roca Energy Ltd. for each one common share of Del Roca Energy Inc. resulting in the issuance of an aggregate of 7,200,847 common shares of Del Roca Energy Ltd. Shareholders of Tekerra Gas Inc. will receive 0.6 common shares of Del Roca Energy Ltd. for each one common share of Tekerra Gas Inc. resulting in the issuance of a further aggregate of 5,439,575 common shares of Del Roca Energy Ltd. The common shares of Del Roca Energy Ltd. will be posted for trading in substitution for the pre-amalgamated common shares of Del Roca Energy Inc. at the opening of business on MONDAY, NOVEMBER 2, 1998. Commencement of trading in the common shares of Del Roca Energy Ltd. will be delayed pending receipt of documentation. A further Bulletin will be issued prior to commencement of trading. Stock Symbol: DRQ Security Code: ISM - 217 452 CUSIP Number: 245481 10 6 Transfer Agent: Montreal Trust Company of Canada - Calgary

To: Kerm Yerman who wrote (13103)	10/29/1998 10:07:00 PM
From: Kerm Yerman	Read Replies (10) \| Respond to of 15196

EARNINGS / New Cache Petroleums Well Positioned Entering 1999 CALGARY, Oct. 29 /CNW/ - New Cache continues to be well positioned to enter the 1999 winter season by having approximately 65% of its production coming from gas sales. During the fourth quarter, the Company participated in six gross (1.5 net) wells resulting in four (0.65 net) gas wells and two (0.85 net) abandoned wells. This gives the Company a 62% success rate year-to-date while drilling a total of 29 (13.37 net) wells. The Doris property continues to perform well, averaging 20.5 mmcfd and 152 bpd of liquids during the three months ending August 31, 1998, despite a week-long plant turnaround at the Doris I processing facility. Effective July 1, 1998, New Cache increased its ownership in the Doris I plant from 13.5% to 22.91%, thereby reducing its processing fees for the area. The Company plans to drill up to seven development wells and three exploration wells during the upcoming winter. Each of the exploration plays provides New Cache the opportunity to duplicate the success of the initial Doris pool. At Bronson, the 10-20-57-17 W5M (50% W.I.) well drilled during the second quarter was placed on production in August and has been producing at approximately 6.5 mmcfd from the Wabamun formation. Gross recoverable reserves of 18.0 Bcf and 386 mbbls of liquids have been assigned to this well. A step-out well (50% W.I.) was drilled four miles to the north of the existing production during the third quarter. The targeted zones were encountered but were not well enough developed to justify economic completion. Subsequent to the third quarter, New Cache participated in a successful gas well (14% W.I.) which, when completed, should be capable of the same production rates as the 10-20 producer. The Company has defined three lower risk development locations that will be drilled in the next six months and, depending on the results, New Cache could drill up to five additional development locations on the seven undrilled surrounding sections. At Mink Lake, New Cache has a 100% working interest in five prospective shallow gas sections where five surrounding wells were tied-in last year. An initial well is planned for early winter and, if successful, up to four additional locations are identified on seismic. The production rate associated with each well is expected to be 2 to 3 mmcfd with reserves of 2 to 4 Bcf. Cash flow from operations for the nine month period ended August 31, 1998 remained 23% ahead of the same period last year, despite a 32% drop in oil prices, with $8.644 million ($0.61 per share) being recorded in 1998 and $7.002 million ($0.73 per share) in 1997. For the three months ended August 31, 1998, cash flow from operations totalled $2.395 million ($0.17 per share), compared to $1.936 million ($0.17 per share) in the third quarter of 1997. Gas production for the nine months ended August 31, 1998, at 28.588 mmcfd, is 241% higher than the 8.387 mmcfd achieved during the same period in 1997. Gas prices are 17% higher for this period in 1998, $1.89 per mcf compared to $1.62 per mcf in 1997, and the prices are strengthening even more as we approach the winter heating season. Oil and liquids production was down marginally at 1,693 bpd for the nine months ended August 31, 1998, 4% lower than the 1,761 bpd for the same period in 1997. Oil prices continued to remain low, with an average price received for oil and liquids of $17.28 per bbl for the first three quarters of 1998 compared to $25.60 per bbl for the same period in 1997. On a year-to-date basis, production expenses averaged $5.63 per boe to August 31, 1998 compared to $5.21 per boe in 1997. General and administrative expenses, on a per unit basis, were down to $1.59 per boe in 1998 from $2.22 per boe in the same period of 1997. For the nine months ended August 31, 1998, New Cache incurred a net loss of $2.423 million ($0.17 per share) as compared to a net income of $0.458 million ($0.05 per share) for the first nine months in 1997. The Company has invested $21.893 million in the first nine months of 1998, compared to $40.629 million during the same period in 1997. At August 31, 1998, New Cache had debt, net of working capital, of $35.312 million, compared to $25.532 million at August 31, 1997. New Cache currently has approximately 14.185 million shares outstanding with 15.407 million on a fully diluted basis.

To: Kerm Yerman who wrote (13103)	10/30/1998 10:43:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

NATURAL GAS / PART 1 - North American Information NYMEX Hub Natural Gas Ends Up On Technicals, Weather NEW YORK, Oct 29 - NYMEX Hub natural gas futures ended higher on Thursday in a sluggish session, with some technical buying and concerns about Hurricane Mitch and a colder weather forecast lifting the complex, industry sources said. December climbed 2.4 cents to close at $2.348 per million British thermal units after trading Thursday between $2.295 and $2.375. January settled 3.1 cents higher at $2.508. Other deferreds ended up by 0.7 cent to 2.5 cents. ''If it was just Mitch, people would be selling gas by the boatload, but because of this cold air mass coming, people are going to wait to see how the cash reacts to the first winter test,'' said one Midwest trader, referring to a revised 10-day forecast calling for a shot of Canadian cold next month. While most did not expect Mitch to pose a serious threat to U.S. Gulf of Mexico gas production, traders said some shorts ran for cover after National Hurricane Center (NHC) comments this afternoon that Mitch could move into the Gulf and head north toward the U.S. coast. Traders said Wednesday's AGA storage report showing a 36- bcf weekly stock build also lent some support. But they agreed the bottom line was weather, and without much colder temperatures to stir demand, few saw much upside, particularly with inventories still 234 bcf, or 8 percent, above last year. Mitch weakened to a tropical storm Thursday and was centered near the Honduran city of Limon, with maximum sustained winds dropping to below 75 mph. NHC said the storm may drift west-northwest or northwest later today, possibly taking it to the tip of Mexico's Yucatan Peninsula and into the Gulf of Mexico. It could regain strength if it moves back over water, the center said. WSC expects Northeast and Mid-Atlantic temperatures to range from normal to several degrees F below normal Thursday through Saturday, then warm to normal or slightly above Sunday and Monday. Above normal readings in the Southeast and Florida will moderate to about seasonal levels by Monday. In the Midwest, above normal temperatures Thursday and Friday will gradually cool to normal or slightly below by Monday. Readings in Texas will range from two to six degrees above normal Thursday to four to eight degrees below normal Sunday and Monday, while the Southwest will see mostly below normal temperatures for the period. Chart traders still saw December resistance first in the $2.38-2.41 area, then at $2.44 and at Monday's high of $2.63. Major selling should emerge at the September highs in the $2.715 area. Support was pegged at Wednesday's low of $2.25 and then at the Sept. 2 low of $2.14. In the cash Thursday, Henry Hub swing quotes on average firmed several cents to the low-to-mid $1.70s, with November Hub talked on either side of $2.00, up three cents. Midwest day gas firmed five cents to the mid-$1.60s, while November was talked at about $2.00. In the West, swing gas on El Paso Permian firmed more than five cents to about $1.70, with November pegged in the low-$1.90s. Chicago city-gate was talked more than five cents higher in the low-$1.80s, while November gas in Chicago was pegged at $2.15. New York day quotes slipped slightly to the low-$1.90s, but November was talked from the high-$2.20s to low-$2.40s. The NYMEX 12-month Henry Hub strip gained 4.5 cents to $2.277. NYMEX said an estimated 44,295 Hub contracts traded today, down sharply from Wednesday's revised tally of 149,316. US Next-Day Spot Gas Prices Lag Nov By 25-30 Cents NEW YORK, Oct 29 - U.S. spot natural gas prices recovered slightly for swing business but still lagged the November bidweek market by about 25 cents to 30 cents, industry sources said Thursday. Swing gas prices at Henry Hub were quoted widely at $1.67-1.78 per mmBtu, with Nov. 1 business seen trading around $2.00. In the Midcontinent, next-day prices rebounded into the mid-$1.60s, while November pricing still carried about a 25- to 30-cent premium in the high-$1.90s to low-$2 area. Chicago city-gate prices were quoted around $1.80 for Friday and at $2.15 for next month. In west Texas, El Paso Permian and Waha gas traded at $1.63-1.75 for Friday and about $1.91-1.95 for November. The San Juan markets were also separated by about 25-30 cents, with next-day business seen at $1.63-1.73 and November prices quoted at $1.89-1.91. The ongoing San Juan lateral outage, affecting about 625 million cubic feet per day (mmcfd) of gas out of a total of 800 mmcfd, is expected to last through Saturday. The San Juan lateral runs from Ignacio, Colo., to Blanco, N.M. On the East Coast, New York city-gate prices were quoted around $1.90 for Friday and in the high-$2.20s for November. Normal to below-normal temperatures are expected to return to most of the U.S. starting this weekend in the western and central U.S. and moving into the East by early next week, according to Weather Services Corp. Much below-normal temperatures are forecast for parts of the Southwest and stretching into the Rockies next week. Traders were also keeping their eyes on forecasts showing the arrival of another blast of cold air in the upper Midwest by late next week, which is expected to linger into the following week. Canadian Spot Natural Gas Prices Firm Amid Less Supply NEW YORK, Oct 29 - Canadian spot natural gas prices continued to firm Thursday in the west as the supply bubble seen earlier in the week in Alberta deflated somewhat, industry sources said. Linepack on NOVA's system stood at 12.737 billion cubic feet per day (bcfd) on Wednesday evening, below the target linepack of 12.8 bcfd and down from more than 13 bcfd seen earlier this week. Prices at Alberta's AECO storage hub tacked on an additional 21 cents to about C$2.24-2.27 per gigajoule (GJ). November AECO prices were quoted little changed at C$2.55 per GJ. At Westcoast Energy's Station 2 compressor, day prices climbed to about C$2.38-2.40. Day prices at the Sumas/Huntingdon export point were talked a few cents higher near US$1.65 per mmBtu, while November business was quoted widely at US$2.08-2.20. In the East, Niagara prices were mostly steady at US$1.70 per mmBtu, while November prices were talked at US$2.15-2.20.

To: Kerm Yerman who wrote (13103)	10/30/1998 11:54:00 AM
From: Kerm Yerman	Respond to of 15196

NATURAL GAS / PART 2 - North American Information U.S. Nov/Oct Spot Natural Gas prices - October 29th NOV/OCT ($/mmBtu) NOV-10/29 OCT-10/29 U.S. GULF OFFSHORE 1.88/1.93 1.59/1.64 TEXAS COAST 1.90/1.95 1.65/1.70 WESTERN TEXAS 1.90/1.95 1.65/1.70 LOUISIANA COAST 1.95/2.00 1.67/1.72 NORTHERN LOUISIANA 1.97/2.02 1.69/1.74 OKLAHOMA 1.98/2.03 1.63/1.68 APPALACHIA 2.45/2.50 N 2.28/2.33 SO. CALIFORNIA BORDER 2.32/2.37 2.37/2.42 HENRY HUB 1.97/2.02 1.70/1.75 WAHA HUB 1.91/1.96 1.69/1.74 Canadian Gas Assoc Storage Survey - Oct 23rd TORONTO, Oct 30 - Canadian Gas Association (CGA) weekly survey of Canadian natural gas in storage in billion cubic feet (bcf) for the week ended Oct 23: Pct Full Pct Full 10/23/98 10/16/98 Pct Full Week Ago Year Ago East 233.41 236.47 96.4 97.8 94.5 West 259.29 255.13 95.1 94.3 87.8 Total Canada 492.70 491.60 95.7 95.9 90.9 East-West division is the Manitoba/Saskatchewan and North Dakota / Minnesota borders. East capacity 10/23/98: 242.26 bcf, 10/16/98: 241.82 bcf.