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Gold/Mining/Energy : Gendis TSE:GDS.A -- Ignore unavailable to you. Want to Upgrade?

To: Robert Salasidis who wrote (36)	12/5/1998 4:48:00 PM
From: SAM-DAN	Read Replies (1) \| Respond to of 81

A couple of announcements in the last few days should eventually give some positive momentum to Gendis stock ,if Research Capital ever finishes their selling. First Chicago announced yesterday successful funding to meet their requirements for the Alliance Pipeline project and the Aux Sable NGL plant. CALGARY, Dec. 4 /CNW/ - Fort Chicago Energy Partners L.P. announces that it has finalized agreements with three Canadian commercial lending institutions which create senior and subordinate credit facilities in the maximum principal amount of Canadian $145 million or equivalent in favour of Fort Chicago. Fort Chicago has delivered a general security agreement and its affiliates have delivered guarantees in favour of the lenders as security for Fort Chicago's obligations under the credit facilities. Fort Chicago intends to draw upon these credit facilities to fund its share of the construction costs of expanded Aux Sable natural gas liquids extraction and fractionation plants to be located near Chicago, Illinois, as well as cost overrun credit support required for the Alliance Pipeline project. Fort Chicago also announces that as part of the financing arrangements, it has agreed, subject to the approval of the Toronto, Montreal and Alberta stock exchanges, to issue up to 500,000 warrants on a private placement basis to the lenders. Each warrant is exercisable for one limited partnership unit of Fort Chicago at an exercise price of $6.65 per unit. The 500,000 units represent less than 1% of the total issued and outstanding units of Fort Chicago. The warrants expire on the earlier of one year after start-up of the Alliance Pipeline project and one year after the retirement of the credit facilities and, in any event, not later than five years after the date of issuance. ''With these credit arrangements in place, coupled with the equity funds presently on hand, Fort Chicago has all the necessary financing in place for its 26% share of the Alliance Pipeline and the Aux Sable Plant. The credit facilities include approximately $60 MM for Fort Chicago's equity commitment to fund any cost overruns for both the Alliance Pipeline project, as well as the Aux Sable project'', says Guy J. Turcotte, Chairman and Chief Executive Officer of Fort Chicago. Mr. Turcotte added that ''This financing, coupled with the Certificate of Public Convenience and Necessity (CPCN) issued yesterday by Canada's National Energy Board (NEB), are both highly positive for Fort Chicago unitholders. Alliance is now focussing on completing the construction of these projects for the anticipated October 1, 2000 startup date. The CPCN culminates a very exciting year for Alliance and Fort Chicago with many major milestones having been achieved in 1998.'' The Alliance Pipeline system includes a 3,000 kilometre mainline natural gas pipeline designed to carry natural gas from Northeastern British Columbia to the Chicago-area market centre for distribution throughout North America. Fort Chicago and its affiliates own a 26% interest in the Alliance Pipeline limited partnerships and related entities. The above announcement followed the Dec 3 announcement by Alliance Pipeline of final approval from all regulatory agencies to commence construction of their pipeline. CALGARY, Dec. 3 /CNW/ - Alliance Pipeline today announces that the Canadian National Energy Board (NEB) has issued a Certificate of Public Convenience and Necessity (CPCN) for the Canadian portion of its system. The NEB Certificate, together with the CPCN issued by the U.S. Federal Energy Regulatory Commission (FERC) on September 17, 1998, means that Alliance now has complete regulatory approval for its system construction and operation. ''The vision is now a reality'', says Dennis Cornelson, Alliance President and Chief Executive Officer. ''Our shippers, our partners and the Alliance team have all played key roles in this transformation. They deserve the credit because they have taken the significant risks required to get us to this point. Now, our many other stakeholders can begin to realize the benefits.'' Cornelson continues, ''In its November 26, 1998 Reasons for Decision, the National Energy Board found, 'that Alliance is a well-conceived project that will provide an innovative alternative to the existing gas transportation infrastructure'. With the CPCN issued today, we now have comprehensive American and Canadian approval of the Alliance initiative to introduce pipeline competition and choice for western Canadian gas producers and to provide an additional secure source of supply for Midwestern U.S. and eastern Canadian consumers. ''We must not lose sight of the fact that this significant achievement is, in fact, only the end of the beginning. From here, we must now proceed with the construction and then with the operation of our system. There are significant challenges before us. Based on our short history, I am confident we will successfully rise to these challenges as well. ''Construction of the Alliance system will generate a wide range of economic benefits in both the United States and Canada through employment and entrepreneurial opportunities at the local, regional and national levels. And, as has been stated in both the FERC's Final Environmental Impact Statement and in the NEB's Comprehensive Study Report on environmental issues, this can all be accomplished without significant adverse environmental effects. Cornelson concludes, ''Alliance can now move forward with one of the largest construction projects in North America. The construction start of the Alliance system is now set for 1999. Our partners remain enthusiastic about and fully committed to the Alliance project schedule which will see western Canadian natural gas flowing through our system at the beginning of the fourth quarter of 2000 as previously announced. We are continuing to take all the necessary actions to ensure that we have the material and personnel in place to achieve this schedule.'' The Alliance Pipeline system is designed to carry natural gas from western Canada to the Chicago-area market center for distribution throughout North America. Investors in the Alliance Pipeline Limited Partnerships currently include affiliates of: - Coastal Corporation (NYSE:CGP) - 14.4% - Duke Energy Corporation (NYSE:DUK) - 9.8% - Enbridge Inc. (TSE:ENB) - 21.4% - Fort Chicago Energy Partners LP (TSE:FCE.UN) - 26.0% - The Williams Companies, Inc. (NYSE:WMB) - 4.8% - Unocal Corporation (NYSE:UCL) - 9.1 % - Westcoast Energy Inc. (TSE:W) - 14.5% Since Gendis owns 22.25% of Fort Chicago shares this gives it an effective 6+% interest in the Alliance consortium through which Gendis anticipates ,at a minimum a dividend to its shareholders of .24 to.27 a share with another 50% of earnings per year available for general corporate uses. The new credit facility arranged by Fort Chicago establishes a minimal $6.65 price per warrant which shows the faith the lenders have in this project. It must be noted that Gendis 14,688,610 units of Fort Chicago so that the value of Gendis is almost completely reflected in the value of Fort Chicago alone.Without all the other valuable holdings which we listed in our previous posting. The oil and gas price slide has adversely affected the Gendis holding in Pioneer Natural Resources but Gendis's latest Quarterly report shows that their SAAN operation now entering the all- important fourth Quarter xmas sales period in which usually at least half their revenues are achieved ,could see a positive turn around. With the end of tax loss selling and the afore mentioned Research Capital selling we should be witnessing the last opportubity to buy into a company that has tremendous potential and still continue to be holders and buyers of this stock. Take another look[discount the Eastern-biased stock analysts who will recommend a Dylex over this much more potentially rewarding play}and then make your choice. Sorry for the length of the posting but we felt all the above information is important to make an informed decision.