Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

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

To: Kerm Yerman who wrote (13131)	10/30/1998 7:43:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Carmanah Completes Purchase of Stirling Interest in Bawean PSC, Camar Field TSE SYMBOL: CKM OCTOBER 30, 1998 CALGARY, ALBERTA--Carmanah Resources Ltd. ("CKM" - TSE) announces that its wholly-owned subsidiary, GFB Resources (Java) Limited( "GFB Java"), has now completed the previously announced purchase of an additional 16 percent interest in the Bawean Production Sharing Contract and Camar Field, situated in the Java Sea offshore Indonesia. The transaction was completed effective September 1, 1998 pursuant to a Settlement Agreement with Stirling Resources N.L. ("Stirling") of Australia, and increases GFB Java's interest to 100 percent. The assignment of Stirling's interest will now be submitted to Pertamina, the Indonesian state oil company, for formal acceptance. The consideration paid included debt forgiveness of U.S. $5.5 million owed to Carmanah by Stirling for unpaid cash calls arising from the 1998 capital program at Camar, U.S. $500 thousand in deferred payments and the issuance to Stirling of 1.3 million Carmanah common shares from treasury. The common shares are subject to a minimum four-month hold period from closing pursuant to private placement regulations in Canada. As a result of the transaction, Carmanah now has 41.8 million common shares outstanding and increases its stake in Camar reserves and production by 19 percent without incurring any additional long-term debt.

To: Kerm Yerman who wrote (13131)	10/30/1998 7:47:00 PM
From: Herb Duncan	Respond to of 15196

CORP / CORRECTION: Perbercan - Announcement ME SYMBOL: PBC OCTOBER 30, 1998 MONTREAL, QUEBEC--At the request of the Montreal Stock Exchange, PEBERCAN would like to announce that it is unable to explain neither the recent surge in activity nor the increase in the price of its stock. Apart from the announcements made at its last shareholders' meeting held on June 16, 1998, the company has no additional information regarding its petroleum operations. PEBERCAN would like to recall its partnership agreement signed with MAUREL & PROM for 30 percent ownership in the drilling of CANASI 1 in Block 7 of its Cuban concession. CANASI 1 is located about 1.5 km from the Puerto Escondido oil deposit; the last two wells drilled on this deposit produce 1,800 and 2,500 barrels of oil per day respectively. PEBERCAN reaffirms its intention to begin drilling CANASI 1 as soon as possible. Spurred by its agreement with MAUREL & PROM, PEBERCAN continues to seek other partners in the drilling of this well.

To: Kerm Yerman who wrote (13131)	10/30/1998 7:57:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Deena to Review Restructuring ASE SYMBOL: DNG OCTOBER 30, 1998 CALGARY, ALBERTA--Deena Energy Inc. announces that the Company was unable to reach an agreement with its main institutional lender regarding a restructuring plan. As a result of the Bank being unwilling to forbear on their secured demand loan, the Company on October 29, 1998, filed for creditor protection by filing a "NOTICE OF INTENTION TO MAKE A PROPOSAL" under the Bankruptcy and Insolvency Act and has obtained, as a result, a 30 day stay of proceedings by all creditors, subject to review by a court of competent jurisdiction. 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 (13131)	10/30/1998 8:06:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Berkley Petroleum Completes $37.9 Million Private Placement of Flow-Through Common Shares TSE, ASE SYMBOL: BKP OCTOBER 30, 1998 CALGARY, ALBERTA--Berkley Petroleum Corp. announces that it has completed the private placement of 3,700,000 flow-through common shares at a price of $10.25 per share. This issue was expanded from 3,000,000 shares to meet demand. A portion of the offering was subscribed for by management, directors and employees, and the balance was placed through a syndicate of investment dealers including Nesbitt Burns Inc., FirstEnergy Capital Corp., CIBC Wood Gundy Securities Inc., First Marathon Securities Limited, Peters & Co. Limited, ScotiaMcLeod Inc., Sprott Securities Limited and TD Securities Inc. Berkley will use the net proceeds of the private placement to fund exploration expenditures and will renounce to subscribers Canadian exploration expense equal to the subscription amount for the flow-through common shares. On October 28, 1998, Berkley filed a preliminary short form prospectus to qualify an additional offering of 4,000,000 common shares at a price of $11.25 per share to be issued on a "bought deal" basis through a syndicate of Canadian investment dealers led by Nesbitt Burns Inc. and FirstEnergy Capital Corp. and including CIBC Wood Gundy Securities Inc., First Marathon Securities Limited, Peters and Co. Limited, Bunting Warburg Inc., ScotiaMcLeod Inc., Sprott Securities Limited and TD Securities Inc. The bought deal is expected to close on or about November 12, 1998. Berkley Petroleum Corp. is a Canadian company engaged in exploration, development and production of natural gas and crude oil. Berkley's common shares are listed on the Toronto and Alberta stock exchanges under the trading symbol "BKP". Berkley Petroleum's News Releases for the past 14 months can be accessed electronically through the Canadian Corporate News website at cdn-news.com.

To: Kerm Yerman who wrote (13131)	10/30/1998 8:18:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Superior Propane Income Fund Third Quarter 1998 Results TSE SYMBOL: SPF.UN OCTOBER 30, 1998 CALGARY, ALBERTA-- HIGHLIGHTS - Cash generated from operations reaches $11.9 million, a 15 percent increase over last year - Superior's acquisition of ICG Propane Inc. anticipated to close during 4th quarter /T/ (Amounts in thousands except where noted) Three Months Ended Nine Months Ended Sept 30 Sept 30 Proforma(x) Proforma(x) Financial 1998 1997 1998 1997 -------------------------------------------------------------- Cash generated from operations before changes in net working capital $11,910 $10,333 $50,697 $48,255 Less capital expenditures (3,917) (1,287) (5,245) (1,888) -------------------------------------- Cash generated from operations after capital 7,993 9,046 45,452 46,367 Less non-controlling interest's share (2,794) (2,628) (21,455) ------------------------------------- Distributable cash flow $ 7,993 $ 6,252 $42,824 $24,912 ------------------------------------- ------------------------------------- Distributable cash flow per average trust unit outstanding $0.175 $0.216 $0.980 $1.000 DISTRIBUTIONS PER TRUST UNIT $0.27 $0.27 $0.98 $0.83 Trust units outstanding 45,747 41,166 Average trust units outstanding 45,747 28,979 43,712 24,900 /T/ 1998 THIRD QUARTER RESULTS Superior increased third quarter cash generated from operations 15 percent to $11.9 million in 1998 compared to $10.3 million in 1997, which resulted in distributable cash flow of $8 million for the Fund in 1998, compared to $6.3 million in the prior year period. The third quarter reduction in distributable cash flow per trust unit has two components: - 2.3 cents per trust unit resulting from cash generated from operations after capital being lower due to higher capital expenditures which has flowed through to impact the nine month results; - 1.8 cents per trust unit due to the Fund's increase in ownership on September 5, 1997, from 50 percent to 90 percent during the normal seasonally low summer period which benefits the Fund during the remainder of the year. Operating performance continues to be on track to generate annual distributable cash flow per trust unit for 1998 in excess of those achieved in 1997. (x) See accompanying note for basis of proforma presentation OPERATING RESULTS Superior's gross profit for the third quarter was $43.0 million and was comparable to the prior year. Propane sales volume of 261 million litres declined by 13 percent from last year due mainly to lower auto propane and oil field service sales volumes. The impact of lower sales volumes was fully offset by the impact of higher average sales margins reflecting an improved sales mix as well as improved contributions from Superior's wholesale transportation business which was restructured during the third quarter of 1997. Operating and administration expenses of $33.3 million were $3.5 million or 9 percent lower than last year, reflecting lower variable delivery costs associated with lower sales volumes as well as reduced fixed operating costs due to restructuring initiatives undertaken in Ontario, Quebec and Atlantic Canada during the second quarter of 1998. Net capital expenditures for the quarter amounted to $3.9 million compared to $1.3 million in the prior year period. Increased capital expenditures were directed mainly towards Superior's information system replacement project which was initiated in the 4th quarter of 1997. Capital expenditures increase in the second half of the year as Superior's truck fleet, tanks and cylinders are renewed in advance of the winter heating season. Capital expenditures in the fourth quarter are anticipated to be similar to last year's levels. /T/ Three Months Ended Nine Months Ended September 30 September 30 1998 1997 1998 1997 --------------------------- --------------------------- Gross Gross Gross Gross Volume Profit Volume Profit Volume Profit Volume Profit (x) (xx) (x) (xx) (x) (xx) (x) (xx) ------------------------------------------------------- Residential 20.2 $ 6.0 23.0 $ 6.4 100.7 $ 29.4 122.3 $ 32.3 Commercial 33.0 7.2 36.0 7.4 144.2 29.8 165.1 31.7 Agricultural 16.1 1.7 19.1 1.9 42.4 4.3 49.5 4.8 Industrial 85.6 12.3 95.9 12.7 291.9 39.7 330.0 41.6 Automotive 105.7 8.4 126.9 8.0 313.3 21.5 366.3 19.7 Other 7.4 6.6 25.3 21.2 ------------------------------------------------------- 260.6 $43.0 300.9 $43.0 892.5 $150.0 1033.2 $151.3 ------------------------------------------------------- Average Margin (xxx) 13.68 12.09 13.95 12.59 /T/ (x) Volume of propane sold (millions of litres) (xx) Millions of dollars (xxx) Average propane sale margin (cents per litre) UPDATE ON ICG PROPANE ACQUISITION On July 20, 1998, Superior entered into an agreement with Petro-Canada to acquire 100 percent of ICG Propane Inc. for net consideration of approximately $175 million. The Competition Bureau is presently reviewing the transaction and anticipate completing their review by the end of November. The transaction is anticipated to close after the Competition Bureau's review has been completed. Pursuant to the purchase agreement with Petro-Canada, Superior has advanced the net purchase consideration of $175 million into an escrow deposit account. Pending the completion of the transaction, Superior has capitalized the ICG escrow account deposit, acquisition costs and net financing costs associated with the escrow account deposit. An interim $200 million credit facility has been arranged to finance the acquisition. This transaction is in line with Superior's strategy of finding suitable opportunities inside and outside of the propane business with predictable capital requirements and stable cash flow in order to generate growing distributions to unitholders over time. OTHER On Sept. 16, 1998, John S. Burns, Q.C., was appointed as trustee of the Fund. Mr. Burns is a senior partner with Bennett Jones Verchere and brings a wealth of business, leadership and board experience to the Fund. /T/ SUPERIOR PROPANE INCOME FUND CONSOLIDATED STATEMENT OF EARNINGS -------------------------------------------------------------- (unaudited, thousands of dollars) Three Months Ended Nine Months Ended September 30 September 30 Proforma(x) Proforma(x) 1998 1997 1997 1998 1997 1997 -------------------------------------------------- Revenues $78,040 $36,849 $96,951 $280,711 $36,849 $368,180 Cost of products sold 35,014 19,860 53,941 130,743 19,860 216,849 ------------------------------------------------- Gross profit 43,026 16,989 43,010 149,968 16,989 151,331 ------------------------------------------------ Expenses Operating and administration 33,332 12,259 36,855 96,442 12,553 104,313 Depreciation and amortization 8,800 3,247 8,563 28,810 3,247 23,335 Interest 634 117 356 2,379 117 1,135 Income taxes of Superior (3,000) (401) (4,880) (900) (401) (2,558) Non-controlling Interest 315 1,075 2,464 315 14,465 ------------------------------------------------ 39,766 15,537 41,969 129,195 15,831 140,690 ------------------------------------------------ Earnings from investment in Superior Income on 13 percent Shareholder Notes 4,250 16,660 Equity loss on Common Shares (4,661) (7,177) ------------------------------------------------- (411) 9,483 ------------------------------------------------- Net income before distributions to unitholders $3,260 $1,041 $1,041 $20,773 $10,641 $10,641 ------------------------------------------------- ------------------------------------------------- CONSOLIDATED BALANCE SHEET -------------------------------------------------------------- (unaudited, thousands of dollars) September 30, December 31, 1998 1997 --------------------------- Assets Net operating working capital $ 55,746 $ 30,574 Investment in ICG Propane Inc.(xx) 176,250 Capital assets and goodwill 531,924 513,258 --------------------------- $763,920 $543,832 --------------------------- Liabilities and Unitholders' equity Bank indebtedness $ 14,022 Distributions payable to unitholders 12,352 11,115 Distributions payable to non-controlling interest 1,262 ICG Acquisition Debt 175,000 --------------------------- 187,352 26,399 Long Term Debt 39,844 Deferred income taxes 30,047 31,397 Non-controlling interest in Superior 18,090 Unitholders' equity 506,677 467,946 --------------------------- $763,920 $543,832 --------------------------- --------------------------- /T/ (x) See accompanying note for basis of proforma presentation (xx) Includes $175 million escrow deposit, acquisition costs and net financing costs associated with escrow deposit /T/ SUPERIOR PROPANE INCOME FUND CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION -------------------------------------------------------------- (unaudited, thousands of dollars) Three Months Ended Sept 30 Proforma(2) 1998 1997 1997 ------------------------------ OPERATING ACTIVITIES Earnings before distributions to unitholders $3,260 $1,041 $1,041 Items not involving cash: Equity loss on Common Shares 4,661 Depreciation and amortization 8,800 3,247 8,563 Non-controlling interest (97) 1,075 Deferred income taxes of Superior (150) (85) (346) ---------------------------- Cash generated from operations before changes in working capital 11,910 8,767 10,333 Increase (decrease) in working capital (x) (35,233) 5,017 (11,095) ---------------------------- Cash flow from operating activities (23,323) 13,784 (762) ---------------------------- Investing Activities Investment in ICG (176,250) Purchase of 40 percent interest in Superior (252,236) (252,236) Purchase of 10 percent interest in Superior (1) Bank indebtedness acquired on consolidation of Superior (22,708) Property, plant and equipment (net) (3,917) (499) (1,287) ----------------------------- (180,167) (275,443) (253,523) ----------------------------- Financing Activities Issuance of trust units (1) 252,236 252,236 ICG acquisition debt 175,000 Long term debt 39,844 Distributions to unitholders (12,352) (11,115) (11,115) Distributions to non- controlling interest (412) (1,264) Promissory note ----------------------------- 202,492 240,709 239,857 ----------------------------- Change in cash (998) (20,950) (14,428) Cash (bank indebtedness) at beginning of period 998 (1) (6,523) ----------------------------- Cash (bank indebtedness) at end of period 0 (20,951) (20,951) ----------------------------- ----------------------------- Nine Months Ended Sept 30 Proforma(2) 1998 1997 1997 ------------------------------ OPERATING ACTIVITIES Earnings before distributions to unitholders $20,773 $10,641 $10,641 Items not involving cash: Equity loss on Common Shares 7,962 Depreciation and amortization 28,810 3,247 23,335 Non-controlling interest 2,464 (97) 14,465 Deferred income taxes of Superior (1,350) (85) (186) --------------------------- Cash generated from operations before changes in working capital 50,697 21,668 48,255 Increase (decrease) in working capital (x) (25,976) 4,915 (28,765) --------------------------- Cash flow from operating activities 24,721 26,583 19,490 --------------------------- Investing Activities Investment in ICG (176,250) Purchase of 40 percent interest in Superior (252,236) (252,236) Purchase of 10 percent interest in Superior (1) (59,990) Bank indebtedness acquired on consolidation of Superior (22,708) Property, plant and equipment (net) (5,245) (499) (1,888) ---------------------------- (241,485) (275,443) (254,124) ---------------------------- Financing Activities Issuance of trust units (1) 60,772 252,236 252,236 ICG acquisition debt 175,000 Long term debt 39,844 Distributions to unitholders (42,818) (23,920) (23,920) Distributions to non- controlling interest (2,012) (412) (14,409) Promissory note (300) ----------------------------- 230,786 227,904 213,607 ----------------------------- Change in cash 14,022 (20,956) (21,027) Cash (bank indebtedness) at beginning of period (14,022) 5 76 ----------------------------- Cash (bank indebtedness) at end of period 0 (20,951) (20,951) ----------------------------- ----------------------------- /T/ (x) Includes changes in net working capital and accrued distributions to unitholders and non-controlling interest. (1) Purchase of 10 percent interest in Superior: On May 28, 1998, the Fund acquired from Union Pacific Resources Inc. (UPRI) an additional 10 percent Shareholder Note and Common Share interest in Superior in consideration for the issuance of 4,570,695 trust units valued at $60.8 million, pursuant to an exchange agreement between UPRI and the Fund dated October 8, 1996. UPRI in turn, sold the trust units so acquired, and its rights under Management and Administrative agreements with Superior and the Fund respectively, to a group of senior executives of Superior together with funds managed by Enterprise Capital Management Inc. As a result of these transactions, Superior is now wholly owned by the Fund. (2) Pro-forma comparative presentation: On September 5, 1997, the Fund acquired from UPRI an additional 40 percent interest in Superior at a cost of $252.2 million, bringing the Fund's total interest in Superior to 90 percent. Consistent with the Fund's increased ownership of Superior, the Fund began to consolidate its investment in Superior effective September 5, 1997. Prior to that date, the Fund accounted for its investment in Superior on the equity basis. The proforma presentation reflects the results of the Fund presented on a consolidated basis, based on the Fund's actual ownership during the three and six month periods ended June 30, 1997. Search for News keyword stock symbol organization name Search for: exchange industry time frame Send Us Your News Releases \| Today's News \| Search for News \| Hot-Off-The-Wire Contact Us \| Email Feedback \| Client Headquarters \| Information Centre \| What's New \| We're Hiring Other Links \| TEF@ \| Matthews Media Directories \| Stock Quotes

To: Kerm Yerman who wrote (13131)	10/30/1998 8:20:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Enbridge - Supreme Court Issues Decision TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF OCTOBER 30, 1998 TORONTO, ONTARIO--October 30, 1998 - The Supreme Court of Canada today issued its decision in the appeal brought by Gordon Garland in Garland vs. Consumers Gas Co. The Court allowed the appeal, set aside the summary judgment dismissing the action, and remitted the action back to the Ontario Court (General Division) for proceedings in accordance with the Class Proceedings Act, 1992. The Consumers' Gas Company Ltd., which now operates as Enbridge Consumers Gas, intends to continue its defence of this action before the Ontario Court. On April 25, 1994, the action was commenced in the Ontario Court of Justice (General Division) by a customer claiming that late payment penalties charged to customers were contrary to Canadian federal law and seeking certification of the action as a class action. The claim sought $112 million in "restitutionary payments" and other relief and was brought on behalf of all people who were customers of Consumers Gas and who had paid or been charged for late payment penalties since April 1, 1981. On February 13, 1995, Mr. Justice Winkler of the Ontario Court of Justice (General Division) issued a summary judgment on a threshold issue in favour of Consumers Gas dismissing the class action lawsuit. An appeal by the plaintiff from this decision was dismissed by the Ontario Court of Appeal on September 19, 1996. The plaintiff was granted leave to appeal to the Supreme Court of Canada from the decision of the Court of Appeal. The appeal was heard by the Supreme Court of Canada on March 23, 1998. Late payment penalties were voluntarily adopted in the late 1970s following review by a task force of Ontario public utilities in consultation with the then Minister of Energy and were seen as a means of providing a balanced measure of protection, not only for the individual customer, but also the broad public interest. In addition, the Ontario Energy Board specifically approved the Consumers Gas late payment penalties in the Board's decisions and every rate order issued in the time period that is material to this action. Enbridge Consumers Gas believes that late payment penalties are a reasonable mechanism to encourage prompt payment of utility bills and thus minimize the costs of carrying and collecting accounts that must be borne by all customers in rates charged for the sale of natural gas. Enbridge Consumers Gas is a wholly owned subsidiary of Enbridge Inc., formerly known as IPL Energy Inc., a leader in energy transportation, distribution and services. Enbridge Consumers Gas is Canada's largest natural gas distribution company, providing gas and retail services to more than 1.4 million customers in Ontario, Quebec and New York State.

To: Kerm Yerman who wrote (13131)	10/30/1998 8:23:00 PM
From: Herb Duncan	Respond to of 15196

ENERGY TRUSTS / RE: NCE limited partnerships buy $4.0 million of flow-through shares of Canadian 88 Energy Corp. OCTOBER 30, 1998 TORONTO, ONTARIO-- John Driscoll, President of NCE Resources Group, announced today that NCE Resource (97) Limited Partnership and NCE Flow-Through (98) Limited Partnership have made flow-through investments by purchasing 333,350 and 333,320 common shares respectively of Canadian 88 Energy Corporation, worth a total of $4.0 million. The purchase was completed for a price of $6.00/ share. Canadian 88 Energy Corporation Canadian 88 Energy Corporation : - is a publicly traded company with a market capitalization of over $500 million; - is one of the leaders in the use of large-scale, high resolution 3-D Foothills seismic programs; - is predominantly a gas-oriented company with a focused strategy of exploring for deep, liquids-rich natural gas prospects; - has one of the largest Foothills Corridor land holdings in the prolific "west 5" area of Alberta and is one of the leading deep drillers in the area; - is involved in several high impact exploration and development areas includin Caroline, Waterton and Wildcat Hills. The company benefits from a strong management team led by Greg Noval and J. P. Bryan. The Partnerships The Partnerships have been organized to invest in flow-through shares of public resource companies with the objective of achieving capital appreciation for the Limited Partners. The Partnerships invest primarily in companies that are involved in oil and gas exploration, development and/or production and, to a lesser extent, can also invest in companies involved in mineral exploration, development and/or production. NCE Resources Group The Partnership's General Partner is a member of the NCE Resources Group, which was formed in 1984 as an oil and gas investment management organization. NCE provides a full range of technical, operational, administrative and investor services.

To: Kerm Yerman who wrote (13131)	10/31/1998 12:53:00 AM
From: Kerm Yerman	Respond to of 15196

CORP. NOTICE / Canadian TALON Resources Announces Changes CALGARY, ALBERTA--Canadian TALON Resources, Ltd. (the "Corporation") announces that Mr. Christopher J. Robb and Chris J. Bloomer have resigned as a directors of the Corporation, effective October 21, 1998 and October 27, 1998, respectively. The Board of Directors of the Corporation now consists of (a) William Sudhaus, of Radnor, Pennsylvania, Chairman and Chief Executive Officer of the Corporation, (b) John Wright, of Quito, Ecuador, President and Chief Executive Officer of Pacalta Resources, Ltd., (c) Bruce Chernoff, of Calgary, Alberta, Executive Vice President of Pacalta Resources, Ltd., (d) Ben Pollner, of London, England, Chairman and Chief Executive Officer of Taurus Petroleum Ltd. and (e) Craig Culbertson, of Hinsdale, Illinois, Equity Partner of Jenner & Block (Chicago, Illinois) and Executive Vice President and General Counsel of the Corporation. The Corporation also announces that: (a) it has relocated its executive headquarters from Calgary to suburban Philadelphia; and (b) it has retained Barclays Capital (a division of Barclays Bank PLC) to raise U.S. $17.5 million to fund the development of the Corporation's 18 megawatt power project in Ecuador.

To: Kerm Yerman who wrote (13131)	10/31/1998 12:56:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Underbalanced Drilling Systems Corporation - Results for the nine months ended September 30, 1998 CALGARY, Oct. 30 /CNW/ - UNDERBALANCED DRILLING SYSTEMS CORPORATION (''UDSC'') announces today that: Despite the downturn in the Canadian drilling industry UDSC's results show an improvement in cash flow. Cash flow from operations was a positive $32 thousand during the quarter which improved the nine month cash flow from operations to a negative $195 thousand. The net loss during the quarter was $142 thousand bringing the nine month total to $698 thousand ($0.08 per share). Revenues during the third quarter were $464 thousand, for a nine month total of $1,622 thousand. UDSC's intensified marketing efforts are showing results and it is expected that all its available equipment will be well utilized over the winter drilling season. FINANCIAL HIGHLIGHTS ($000's except per share and share data) Nine months ended September 30 1998 1997 ------------------------------ ---- ---- Revenue 1,622 25 Total Expenses 2,320 822 Net Loss 698 797 Operating Cash Outflow (i) 195 679 Loss per share ($ per share) 0.08 0.13 Operating Cash Outflow per share (i) ($ per share) 0.02 0.11 As at September 30 1998 1997 ------------------ ---- ---- Current Assets 515 2,689 Total Assets 9,068 8,194 Current Liabilities 169 520 Total Liabilities 1,371 1,900 Shareholders' Equity 7,698 6,294 Shares Issued and Outstanding (000's) 8,329 7,079 (i) Net loss plus amortization and depreciation UDSC has completed a total of three exhaust gas processors (''EGP'') for the underbalanced drilling market. The first two EGP units continue to operate reliably, and the third saw its first commercial operation in October, 1998 where it had less than 1% downtime. Construction of UDSC's fourth EGP was halted 1-1/2 months from completion. UDSC implemented a cost control program in the third quarter, the total results of which will be reflected in the fourth quarter. Operating costs during the third quarter were reduced to 43% of revenue for a nine month total of $957 thousand. General and Administrative expenses were $755 thousand for the nine months ended September 30, 1998 and show a decrease of 31% compared to the second quarter and a decrease of 20% compared to the first quarter. Current financial resources will be sufficient to fund the Corporation for at least the balance of 1998, after which the Corporation expects to look to operating capital to fund operations. The Corporation expended a further $119 thousand on capital items during the third quarter for a nine month total of $2,249 thousand. The third quarter expenditures were primarily due to the completion of the third EGP for the underbalanced drilling market and accompanying equipment and spares. The Corporation had no financing activities during the nine months ended September 30, 1998. Subsequent to September 30, 1998 UDSC cancelled all its outstanding stock options. UDSC has since regranted options to employees, officers and directors to purchase 825,000 common shares at an exercise price of $0.50 per common share. This transaction is subject to regulatory approval. The information contained herein has been reviewed by the Board of Directors consisting of Mr. Gene Moody, Mr. Steve Smith, Mr. David Erickson, Mr. John Ferguson and Mr. Rick Ryan. U.D.S.C.'s shares trade on the A.S.E. under the symbol UDS.

To: Kerm Yerman who wrote (13131)	10/31/1998 12:59:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Westrock Energy Income Fund I & II CALGARY, Oct. 30 /CNW/ - WESTROCK ENERGY INCOME FUND I Monthly Cash Distribution Notice Notice is hereby given that a cash distribution at the rate of $0.07 (seven cents) per unit will be payable on November 20, 1998, to all Unitholders of record at the close of business on November 10, 1998. This distribution is comprised of the monthly distribution amount of $0.0550 (five and one half cents), and a supplemental quarterly adjustment of $0.015 (one and one half cents) per unit for the quarter ending September 30, 1998. The distributions for the quarter ending September 30, 1998 total $0.18 (eighteen cents) per unit. Consequently, the new trailing twelve month distribution paid totals $0.99 (ninety-nine cents) per unit. WESTROCK ENERGY INCOME FUND II Monthly Cash Distribution Notice Notice is hereby given that a cash distribution at the rate of $0.11 (eleven cents) per unit will be payable on November 2O, 1998, to all Unitholders of record at the close of business on November 10, 1998. This distribution is comprised of the monthly distribution amount of $0.06 (six cents), and a supplemental quarterly adjustment of $0.05 (five cents) per unit for the quarter ending September 30, 1998. The distributions for the quarter ending September 30, 1998 total $0.23 (twenty-three cents) per unit. Consequently, the new trailing last twelve month distribution paid totals $1.05 (one dollar and five cents) per unit.

To: Kerm Yerman who wrote (13131)	10/31/1998 1:01:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Enermark Income Fund - Monthly Cash Distribution Notice CALGARY, Nov. 30 /CNW/ - Notice is hereby given that a cash distribution at the rate of $0.045 (four and one half cents) per unit will be payable on November 20, 1998, to all unitholders of record at the close of business on November 10, 1998. The distributions for the quarter ending September 30, 1998 total $0.14 (fourteen cents) per unit. Consequently, the new trailing last twelve month distribution paid totals $0.755 (seventy-five and one half cents) per Unit.

To: Kerm Yerman who wrote (13131)	10/31/1998 1:03:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Naftex Energy Corporation - Announcement of Private Placement TORONTO, Oct. 30 /CNW/ - The company now advises that it has received regulatory and disinterested shareholder approval for the completion of a private placement of 40,000,000 common shares at a price of Cdn. $0.20 per share for aggregate proceeds of Cdn. $8,000,000 to Coplex Resources NL. The private placement has been effected pursuant to a subscription agreement dated October 7, 1998. The proceeds of the private placement will be added to working capital and will allow the company to meet its financial obligations with respect to the current exploration program and the 1998-1999 exploration programs in the West Esh El Mallaha (WEEM) Concession in Egypt. The private placement has increased Coplex's shareholdings to 70 million common shares representing 74.4% of the issued and outstanding common shares. The company was required to obtain and has now obtained the requisite number of written consents from disinterested shareholders. The operators of the WEEM Concession is ESHPETCO, a joint venture operating company set up between Coplex (Egypt) Limited, Cabre Exploration (Cyprus) Limited (Cabre) and the Egyptian General Petroleum Corporation to conduct operations on the WEEM Concession. The company and Cabre each beneficially own a 50% interest in the WEEM Concession.

To: Kerm Yerman who wrote (13131)	10/31/1998 1:12:00 AM
From: Kerm Yerman	Respond to of 15196

NEB / NEB Issues Decisions on Detailed Route Hearings for Maritimes & Northeast Pipeline CALGARY, Oct. 30 /CNW/ - The National Energy Board has approved the company's proposed detailed route in 12 out of 17 cases heard in detailed route hearings for the Maritimes & Northeast Pipeline Management Ltd. (M&NP) proposed pipeline project. Of five other cases heard, the Board in three cases denied the applied-for route, and reserved its decision in two other cases, pending the filing of information by the company. The Board held public hearings in Fredericton and Moncton, New Brunswick and in Stellarton and Halifax, Nova Scotia on written statements of opposition it received to the proposed detailed route of the M&NP natural gas pipeline from Goldboro, Nova Scotia to St. Stephen, New Brunswick. The general route for the pipeline was approved in December 1997. Once M&NP applied for approval of its detailed route in its plans, profiles and books of reference, 37 written statements of opposition from landowners were filed with the Board. Fifteen landowner hearings and two mineral rights hearings were held during July and August 1998. In its decision, the Board approved M&NP's proposed detailed route in the cases of: a) Philip Christie (heard in Fredericton) b) Percy Khoury (heard in Fredericton) c) Daniel and Claudia Donnelly (heard in Moncton) d) Charles and Jeannitta Maillet (heard in Moncton) e) Alvin Bourque (heard in Stellarton) f) Gail and William MacKenzie (heard in Stellarton) g) Glenn McNutt (heard in Stellarton) h) Adrian Piek (heard in Stellarton) i) Shelagh Lynch (heard in Stellarton) j) Lorne Wood (heard in Stellarton) k) Orex Exploration Inc. (heard in Halifax) l) Heartland Resources Inc. (heard in Halifax) The Board denied the proposed route in the cases of: a) Robert Hannington (heard in Moncton) b) Roderick and Kimberley Stanley (heard in Stellarton) C) Sue M. Brander (heard in Stellarton) The Board reserved its decision in the cases of: a) H. Franklin Irving (heard in Fredericton) b) William (Billy) MacDonald (heard in Stellarton) The Board also held a detailed route hearing for the proposed route to bring natural gas onshore for the Sable Offshore Energy Project (SOEI). The Board approved the route proposed by SOEI in the cases of Kevin McAllister and Heartland Resources Inc., both heard in Halifax. For a copy of Reasons for Decision MH-3-98 and MH-4-98: Publications Coordinator Library 444 Seventh Avenue S.W. Calgary, Alberta T2P 0X8 (403) 299-3562 This news release is also available on the Board's internet site at www.neb.gc.ca

To: Kerm Yerman who wrote (13131)	10/31/1998 1:16:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

FIELD ACTIVITIES / Harken Energy - Islero #1 Well Drilling Encounters Expected Formations at Deeper Depths DALLAS, Oct. 30 /CNW/ -- Harken Energy Corporation (Amex: HEC) announced today that its Islero #1 well, on Harken's 300,000 acre Cambulos Association Contract block in the Middle Magdalena Valley of Colombia, continues to drill while encountering the expected subsurface geology at deeper depths than originally estimated. Seismic velocity data collected during the drilling of this well has resulted in a reinterpretation of the original seismic model. These data indicate that the target Cimarrona formation may be up to 1,500 feet deeper and that the bed dip (incline) is much higher than originally expected. Based on current estimates, the well could have a total depth of 9,600 feet in order to test the Cimarrona formation if the current drilling direction is continued. Presently, Harken plans to reduce the potential distance to the target Cimarrona to approximately 7,500 feet by moving uphole from the current 7,300 feet and sidetracking the current wellbore. The sidetracking will begin at approximately 4,900 feet with directional drilling updip to the east into the expected location of the Cimarrona. It is important to note that cutting samples from the drilling process, as well as methane gas shows from the well, correlate closely to the El Segundo wells drilled to the north by Seven Seas/GHK on their Emerald Mountain block. Also, the existence of the Cimarrona in the area is further supported by a Harken measurement of a surface outcrop of the Cimarrona limestone formation approximately 1 kilometer east of the Islero well site. Previously, this rock type has also been recognized in the producing section of the El Segundo wells. During the drilling of the Islero #1, the Company encountered multiple highly fractured and faulted zones and has had to set two additional casing strings to solve various mechanical problems with these formations. These formation problems have at times caused temporary sticking of the drill string and other mechanical problems. Consequently, drilling must proceed very cautiously and at a reduced pace. The sidetracking, changed drilling program and added casing strings have caused Harken to add an additional 30 to 45 days of rig time to its estimated drilling schedule and have increased expected well costs. Mikel D. Faulkner, Harken's chairman stated that, "while the well has been difficult mechanically, we remain encouraged based on the information gained through the drilling so far." Harken Energy Corporation ("Harken") explores for, develops and produces oil and gas reserves domestically and internationally. Certain statements in this news release regarding future expectations and plans for international oil and gas exploration and development may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as the inherent uncertainties in interpreting engineering data related to underground accumulations of oil and gas, timing and capital availability, discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 1997. Actual results may vary materially.

To: Kerm Yerman who wrote (13131)	10/31/1998 1:57:00 AM
From: Kerm Yerman	Respond to of 15196

REPORTS / North American Rig Counts US Oil & Gas Rig Count Falls By 8 And Canada Increases By 33 HOUSTON (AP) -- The number of oil and gas rigs operating nationwide fell by eight to 708 this week, Baker Hughes Inc. (NYSE:BHI) reported Friday. There were 1,017 rigs operating in the United States during the same week last year. Of the rigs running this week, 515 were exploring for natural gas and 193 for oil. Rotary Rig Count 10/30/1998 This Week Year Location Week +/- Ago +/- Ago Land 584 0 584 - 289 873 Inland Waters 16 - 5 21 - 7 23 Offshore 108 - 3 111 - 13 121 United States Total 708 - 8 716 - 309 1017 Gulf Of Mexico 105 - 3 108 - 14 119 Canada 171 33 138 - 223 394 North America 879 25 854 - 532 1411 Breakout Information This Week +/- Week Ago +/- Year Ago Oil 193 - 19 212 - 180 373 Gas 515 11 504 - 125 640 Miscellaneous 0 0 0 - 4 4 Directional 174 - 9 183 - 53 227 Horizontal 38 - 2 40 - 32 70 Vertical 496 3 493 - 224 720 Major State Variances This Week +/- Week Ago +/- Year Ago Alaska 11 0 11 3 8 California 26 - 2 28 - 8 34 Louisiana 153 - 1 154 - 58 211 New Mexico 42 - 6 48 - 18 60 Oklahoma 80 8 72 - 13 93 Texas 242 - 8 250 - 150 392 Wyoming 41 3 38 - 7 48 Houston-based Baker Hughes has kept track of the count since 1940. The tally peaked at 4,500 in December of 1981 during the oil boom. It dropped to a record low of 596 in the summer of 1993, exceeding the previous low of 663 in 1986. The rig count represents the number of rigs actively exploring for oil and natural gas. Of the major oil- and gas-producing states, California lost two rigs. Louisiana lost one, while New Mexico lost six, Oklahoma gained eight, Texas lost eight and Wyoming gained three. Alaska was unchanged. U.S. Gulf Rig Count Unchanged At 137 NEW YORK, Oct 30 - There were 137 rigs under contract in the U.S. Gulf as of October 30, unchanged from the previous week, Offshore Data Services said Friday. The utilization rate for rigs working in the Gulf, based on a total fleet of 176, was 77.8 percent. The number of working rigs in the European/Mediterranean area was down one at 107 rigs under contract out of a total fleet of 113, a utilization rate of 95.6 percent. The worldwide rig count rose two to 528 out of a total fleetof 610, with a utilization rate of 86.6 percent.

To: Kerm Yerman who wrote (13131)	10/31/1998 2:27:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

NATURAL GAS / North American Futures NYMEX Hub Natural Gas Ends Down With Cash, Storm NEW YORK, Oct 30 - NYMEX Hub natgas futures mostly ended lower Friday in a sluggish session, pressured by fading concerns about Tropical Storm Mitch and reports of a crumbling early November cash market, industry sources said. December tumbled 7.3 cents to close at $2.275 per million British thermal units after trading today between $2.265 and $2.37. January settled six cents lower at $2.448. Most other deferreds ended flat to down 4.2 cents. ''Mitch is now moving west-southwest, which means it should be no threat to the Gulf, and the cash got killed today. People were looking for homes for early November gas,'' said one Midwest trader, adding a cold front forecast for later next week may not be enough to tighten the early-month market. Traders said technical stop loss selling by funds when December broke $2.33 and $2.28 also contributed to the slide. At 1600 EST, Tropical Storm Mitch was still inland over Honduras, drifting west-southwest at about three mph. Maximum sustained winds increased to 60 mph, but some weakening was still forecast for later tonight and Saturday as Mitch continues its westward drift, National Hurricane Center said. WSC expects Northeast and Mid-Atlantic temperatures to range from normal to several degrees F below normal through Tuesday. Seasonal readings in the Southeast and Florida will cool to slightly below seasonal levels Monday and Tuesday. In the Midwest, above normal temperatures are expected to dip to several degrees below normal Sunday through Tuesday. Readings in Texas will range from normal to 10 degrees F below normal for the period, while the Southwest will see mostly below normal temperatures for the period. Chart traders still pegged key December support at this week's low of $2.25 and then at the Sept 2 low of $2.14. Resistance was seen in the $2.38-2.41 area and then at Monday's high of $2.63. In the cash Friday, early November Henry Hub quotes slumped into the $1.70s and $1.80s though Hub baseload remained talked on either side of $2.00, little changed on the day. Midcon baseload lost more than a nickel to the low-to-mid $1.90s. In the West, November gas on El Paso Permian was down a few cents to about the $1.90 level. Baseload gas at the Chicago city gate was talked in the high-teens, up slightly from yesterday, while New York for next month was pegged one to two cents higher in the low-$2.30s. The NYMEX 12-month Henry Hub strip slid 2.8 cents to $2.249. NYMEX said an estimated 40,800 Hub contracts traded today, down from Thursday's revised tally of 44,448. U.S. November Baseload Natural Gas Prices Steady To Lower NEW YORK, Oct 30 - U.S. spot natural gas prices were steady to lower for November baseload business but sharply weaker for the weekend, industry sources said. November baseload gas prices at Henry Hub were quoted mostly steady at $1.96-2.03 per mmBtu, while swing business ranged widely from $1.65 to $1.93. In the Midcontinent, prices for November baseload were talked a little lower at $1.92-1.97, while Chicago city-gate prices for the month were quoted mostly at $2.16-2.18. In west Texas, El Paso Permian gas traded at $1.85-1.92 for November, while the San Juan market hovered around $1.85, sources said. 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 end Saturday. The San Juan lateral runs from Ignacio, Colo., to Blanco, N.M. In the East, Appalachian deals for the month were reported done at $2.20-2.27. Cooler weather from the west was expected to arrive in the central U.S. this weekend and continue into next week, reaching the East by early next week. The arrival of another cold front was forecast for the upper Midwest by the end of next week, according to Weather Services Corp. U.S. Spot Natural Gas Prices - October 30th NOVEMBER-baseload ($/mmBtu) 10/30 10/29 U.S. GULF OFFSHORE 1.85/1.90 1.88/1.93 TEXAS COAST 1.88/1.93 1.90/1.95 WESTERN TEXAS 1.87/1.92 1.90/1.95 LOUISIANA COAST 1.93/1.98 1.95/2.00 NORTHERN LOUISIANA 1.95/2.00 1.97/2.02 OKLAHOMA 1.92/1.97 1.98/2.03 APPALACHIA 2.21/2.26 2.45/2.50 N SO. CALIFORNIA BORDER 2.30/2.35 2.32/2.37 HENRY HUB 1.97/2.02 1.97/2.02 WAHA HUB 1.91/1.96 1.91/1.96 Canadian Spot Natural Gas Prices Turn Lower Ahead Of Weekend NEW YORK, Oct 30 - Canadian spot natural gas prices turned lower Friday as more supply continued to seep into the Alberta market, industry sources said. Linepack on NOVA's system stood at 12.726 billion cubic feet per day (bcfd) on Thursday evening, down from Wednesday's tally of 12.737 bcfd and the target linepack of 12.8 bcfd. November baseload prices at Alberta's AECO storage hub were quoted at C$2.39-2.50 per gigajoule (GJ), off about 10 cents from Thursday. AECO prices for Saturday were down sharply at C$1.73, while early November quotes were heard in the low-C$2.50s. At Westcoast Energy's Station 2 compressor, November baseload prices were talked in the high-C$2.60s per GJ, though prices for Nov 1 and Nov 2 only were quoted widely at C$2.05-2.15. November swing prices at the Sumas/Huntingdon export point were talked at US$1.55-1.60 per mmBtu, while baseload business was quoted at US$1.95-2.05. In the East, Niagara prices for Sunday/Monday were mostly talked at US$2.00 per mmBtu. Canadian Gas Association storage survey - Oct 23th 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. West capacity 10/23/98 272.57 bcf, 10/16/98: 270.70 bcf. The Canadian Gas Association survey includes liquefied petroleum gas, Canadian operators of gas storage and Canadian companies contracting gas storage in the U.S. The survey does not include statistics from the 25 bcf Sabine storage facility in Alberta.

To: Kerm Yerman who wrote (13131)	10/31/1998 8:09:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

CRUDE OIL/PART 1 - International In Scope 10/30 15:29 - OPEC Renews Oil Producers' Alliance CAPE TOWN, South Africa, Oct 30 - OPEC and non-OPEC producers on Friday discussed ways of using informal contacts to strengthen future cooperation and help stabilise oil markets, OPEC Secretary-General Rilwanu Lukman said. Eight oil ministers who met for more than an hour on Friday evening to discuss the issue found a rapport and achieved a very good understandng, Lukman told reporters. "The idea is to reinforce what OPEC is doing," said Lukman of efforts by the Organisation of the Petroleum Exporting Countries to revive low prices. He said the meeting, held on the sidelines of an international energy conference in Cape Town, discussed ways of boosting the kind of OPEC and non-OPEC contacts that resulted in unprecedented production cuts earlier this year. The OPEC-led supply reductions involved pledges to cut output or exports by non-OPEC nations Russia, Norway, Mexico and Oman, among others, in a bold attempt to stem a steep price slide. Friday's meeting gathered the oil ministers of non-OPEC nations Mexico and Egypt with OPEC members Saudi Arabia, the United Arab Emirates, Libya, Algeria, Qatar and Venezuela, plus Lukman. "The idea of cooperation is not new. We want to strengthen that, without formalising it," Lukman said. He said the non-OPEC producers who have joined in cuts in concert with OPEC producers had made a very good effort to fulfill their promises. The joint cuts were the result of the kind of cooperation that Saudi Oil Minister Ali al-Naimi has been advocating for some time, Lukman said. Naimi promoted the idea again earlier on Friday when he said in a speech to the conference that producers in and out of OPEC should cooperate further to restore balance to the market. "He did not say he is disbanding OPEC. He did not say we are going to have a new organisation. It is not even going to be a formal organisation," Lukman said. "We need to have (the involvement of) the major participants -- countries involved in exporting oil in large scale." "Eight or nine countries are responsible for 80 percent of the exported oil and it is important that if you want to influence the way things are going, you carry these people with you." 10/30 16:10 FOCUS-Saudi Seeks To Strengthen Oil Producer Ties CAPE TOWN, South Africa, Oct 30 (Reuters) - Oil powerhouse Saudi Arabia said on Friday it wanted to pursue further efforts between producers to reduce boom-and-bust oil price volatility. Saudi Oil Minister Ali al-Naimi said producers in and out of the OPEC oil cartel should continue cooperating to restore oil prices stranded this year near 10-year lows. "Recently I have called for a coordinated ad hoc effort both within and outside of OPEC to anchor the market and lessen the impact of its absolute swings," Naimi told an international energy conference in Cape Town. "I propose we pursue this idea further in this conference among the concerned parties." Naimi, whose country is the world's largest oil producer and exporter, was addressing ministers and senior officials from more than 40 petroleum-producing and consuming countries. His message was echoed by Mexico, one of several non-OPEC producers that banded together with OPEC twice this year in an unprecedented effort to revive oil prices. "I believe that the best strategy that we can all follow in these times of instability and low demand is to continue and strengthen our efforts at cooperation," Mexican Oil Minister Luis Tellez told the conference. Tellez was part of an informal meeting later on Friday in Cape Town of six OPEC and two non-OPEC nations to discuss the way ahead for oil suppliers. Saudi Arabia, Venezuela, the United Arab Emirates, Algeria, Qatar, Libya and non-OPEC member Egypt were also present. "It was a get-together...to review the situation and see how things might go on from here," OPEC Secretary-General Rliwanu Lukman told reporters after the talks. Lukman stressed that no new organisation was under consideration to supersede OPEC. "The idea of cooperation is not new. We want to strengthen that without formalising it," said Lukman. "The idea is to reinforce what OPEC is doing." Tellez said agreements drawn up this year involving pledges to siphon 3.1 million barrels per day (bpd) of oil by OPEC and non-OPEC nations had avoided a total breakdown of prices. "Mexico believes that we should explore ways to expand channels of communication with other oil producing nations," he said. Non-OPEC producer Norway, like Mexico a participant in the supply agreements, did not join the gathering with OPEC but earlier met with Saudi's Naimi. Longer term, said OPEC's Venezuela, producers should not rely on supply management as an answer to stable prices. Venezuela's Oil Minister Erwin Arrieta said a boom-bust cycle in crude prices, dating back to the first oil shock of 1973, had proved damaging for oil-producing and consuming nations alike. "Although everybody would agree that efforts should be made to avoid roller-coaster price behaviour, it is important to recognise that traditional supply management by the large, low- cost producers can only be viewed as a bridge," Arrieta said. He said this year's oil prices -- stranded at $13 a barrel for North Sea Brent -- could prove a pointer for difficult times ahead. "The current market situation seems to be showing angles of what we can expect in the future," he said. Naimi said supply cuts were an example of cooperation aimed at stabilising markets in an "optimum prices range." The oil-output reductions helped arrest a 30 percent slide in prices from last year's levels, driven by higher Iraqi production, a warmer winter and Asian economic downturn. But continued global economic uncertainty has helped keep prices in the bargain basement, curtailing OPEC member countries' budgets and slicing oil companies' share values. OPEC ministers have said they would review their agreements at their ministerial conference in Vienna on Nov. 25 and decide whether or not to extend it for another six months. Reiterating a perennial producer theme, Naimi said prices had to remain high enough to pay for continued exploration and development to ensure long-term supplies. "If the price of oil remains at levels reasonable enough to stimulate demand growth and maintain adequate revenues for producers, the world's economy will prosper," he said. "But if prices decline sharply and suddenly, there could be dire consequences for all. Production over the long run would decline for lack of investment funds."