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

To: Kerm Yerman who wrote (13463)	11/12/1998 8:09:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / PanAtlas Increases Production 59 Percent; Releases Nine Month Results TSE SYMBOL: PA NOVEMBER 12, 1998 CALGARY, ALBERTA--Production of oil and natural gas averaged 2,179 barrels of oil equivalent per day in the first nine months of 1998. This 59 percent increase in production volume compared to the corresponding period ended September 30, 1997 reflects the larger production base from last year's corporate expansion into Alberta. Last year, PanAtlas changed its fiscal year end to December 31 from September 30 and our fiscal quarters now coincide with calendar quarters. One of our stated long-term objectives was to balance our production portfolio between oil and natural gas by the end of 1999. We have made significant progress in achieving this objective in the first nine months of 1998. In the first nine months of last year natural gas accounted for 21 percent of the Company's production volume. In the first nine months of 1998 natural gas production was 35 percent of our total production volumes. This represents a 167 percent increase in natural gas production to 7.65 million cubic feet per day compared to 2.86 million cubic feet per day in the previous year's period. The increase to our natural gas volumes came collectively from the additions, expansion and production optimization at Drumheller, and new gas well tie-ins in our Craigmyle/Byemoor core area. /T/ OPERATING AND FINANCIAL HIGHLIGHTS -------------------------------------------------------------- Percent Nine months ended September 30, 1998 1997 Change ------------------------------- ---- ---- ------- OPERATIONS Daily Oil (Bopd) 1,414 1,082 31 Daily Gas (Mcfd) 7,650 2,860 167 Daily Boe (Boepd) 2,179 1,368 59 Average Oil Price (Bbl) $ 17.19 $ 24.80 (31) Average Natural Gas Price (Mcf) $ 1.88 $ 1.72 9 Average Production Costs (Boe) $ 5.75 $ 4.66 23 Field Netback (Boe) $ 9.84 $ 13.37 (26) FINANCIAL (000's, except per share) Revenue (net of royalties) $ 9,337 $ 6,750 38 Funds from Operations $ 4,078 $ 3,951 3 per share $ 0.08 $ 0.12 Net Earnings (Loss) $ (801) $ 1,276 per share $ (0.02) $ 0.04 Net Capital Additions $ 6,216 $ 5,817 7 Long-term Debt $ 14,400 $ 10,600 36 WEIGHTED AVERAGE SHARES OUTSTANDING (000's) 49,675 33,200 50 /T/ In addition to increasing our natural gas volumes, oil production was increased 31 percent to 1,414 barrels per day in the first nine months of 1998 as compared to the first nine months of 1997. The oil volume increases are attributable to the addition of the Drumheller property in Alberta along with a successful seven well development program at Drumheller and Meekwap, Alberta. Our crude oil averages 33 degree API and as such receives light stream pricing which was not adversely affected by the widening price differential between light and heavy crude oils. Nevertheless, the collapse of world crude oil prices in the first nine months of the year has challenged our growth objectives. Crude oil prices declined 31 percent to $17.19 per barrel in the first nine months of 1998, compared to $24.80 per barrel in the first nine months of 1997. Natural gas prices during the period were $1.88 per mcf, nine percent higher than the same period in 1997. Approximately 50 percent of our natural gas production is dedicated to long term systems contracts, 25 percent to short term contracts and 25 percent to spot. In spite of lower prices, the 59 percent increase in production volumes resulted in increased revenue for the period. Net revenue increased 38 percent to $9,337,000 in the first nine months of 1998 compared to $6,750,000 in the first nine months of 1997. Cash costs on an equivalent barrel basis, including net royalties, production, interest, administrative expenses and capital taxes were slightly lower in the period than last year. Cash flow increased three percent to $4,078,000 ($0.08 per share) compared to $3,951,000 ($0.12 per share) in the corresponding period in 1997. Lower crude oil pricing and higher depletion, depreciation and site restoration charges in the first nine months of 1998 resulted in a net loss of $801,000 ($0.02 per share) compared to net earnings of $1,276,000 ($0.04 per share) in the corresponding period in 1997. INVESTING ACTIVITIES Net investing activities for the nine months ended September 30, 1998 was $6,216,000. Fourteen (4.83 net) wells were drilled of which 9 (3.55 net) were oil wells, 2 (0.75 net) were natural gas, and 3 (0.53 net) were dry and abandoned. Two significant wells were drilled on our Meekwap Property in 1998, based on the re-interpretation of a 3D seismic program covering the entire D-2A Unit. The results of these two wells confirmed our belief in the upside of this property. The first well, 4-21-66-15 W5M, commenced production in April 1998 and has produced 225,000 (39,500 net to PanAtlas) barrels of oil equivalent. The 4-21 well had an initial pressure of 21,813 kPa and has flowed water free at an average rate of 1,412 (247 net to PanAtlas) barrels of oil per day since April 1998. The high initial pressure is consistent with virgin pressures or waterflood support. The second 1998 well, 1-20-66-15 W5M, commenced production in July 1998 and has produced 75,000 (13,000 net to PanAtlas) barrels of oil equivalent, averaging 900 (158 net to PanAtlas) barrels per day. As with the 4-21 well initial reservoir pressures were consistent with virgin conditions or waterflood support. Further production history and pool pressure mapping may more definitively determine whether these wells are in an attic position with respect to the main Nisku pool or in fact are new pool discoveries. Numerous wells in this area of the Meekwap D-2A Unit have cumulative production volumes exceeding 2.0 million barrels of oil per well. The AEUB has approved holding applications for the D-2A Unit which will allow for closer spacing of wells and greater exploitation flexibility in the future. Additional drilling within the Unit was deferred by the unit participants until individual companies work out budget problems created by the 1998 oil price shock. PanAtlas is participating for a 16.7 percent working interest in an exploratory step out well on non-unit expiring lands at Meekwap. The well is based on 3D seismic and if successful will either be in an attic position to the east flank of the Meekwap D-2A Unit or a new pool discovery. Drilling is expected to commence in December 1998. Five (2.6 net) oil wells were drilled on our operated property at Drumheller. These five wells were drilled in the first quarter of 1998 and have a cumulative gross production volume of 53,350 barrels of oil equivalent and have averaged 266 barrels of oil equivalent per day since start up. Oil prices began to fall in the first quarter of 1998 and the Company deferred further oil development drilling at Drumheller due to oil price concerns. We focused our attention on lower cost production optimization. We initiated a workover program which was highly successful and resulted in significant production increases from the Drumheller area compared to forecast volumes. This development deferral allowed our exploration team to focus on developing natural gas exploration plays in the liquids rich W5M areas of Alberta. During the period we made excellent progress and invested over $1.0 million in new land acquisitions adding 15,700 gross (8,600 net) acres of undeveloped land. New W5 core plays have been established at Niton, Carrot Creek and Barrhead. At Niton, Alberta the Company acquired a 50 percent working interest in eight sections of new lands at Crown land sales. The Niton area has been and continues to be highly competitive and the Company is sensitive about releasing results. The Company press released on November 2, 1998 that it had participated for a 50 percent working interest in an exploratory well on its Niton property and the well had been completed and was being tested for natural gas production. At Carrot Creek just southwest of Niton the Company acquired a 50 percent working interest in eight sections of new Alberta Crown lands at 1998 sales. The Company has leveraged a portion of this position creating a two section pooling and farmout agreement whereby PanAtlas will participate and maintain a 20 percent working interest in an exploratory well to be drilled on these lands. At Barrhead, Alberta, PanAtlas has acquired a 50 percent interest in one section of Alberta Crown lands. Seismic data has been acquired and an exploratory well is planned for the first quarter of 1999. OUTLOOK As evidenced by our rapidly increasing natural gas production volume from 2.86 mmcf per day to 7.65 mmcf per day in the first nine months of 1998, we are actively shifting our production weighting towards natural gas. This move will take on greater significance as natural gas prices continue to increase. The signs are pointing towards significant improvements in natural gas pricing in 1999, as the additional 1.1 bcf per day of export capacity becomes available to ship Alberta gas to more lucrative US markets. PanAtlas has created expanded core areas W5M with a view to building long-term natural gas prospects, to provide opportunity for PanAtlas shareholders to participate in this forecast optimism for future natural gas prices. We are clearly making solid progress. The situation with respect to the collapse of oil prices is another matter. The signs are still bearish and the Company is delaying development drilling plans at Drumheller and tailoring capital spending to match cash flow and credit lines while building a solid inventory of natural gas prospects. The senior companies are flooding the divestiture market with oil and gas properties which will create solid acquisition opportunities for healthy companies. The oil and gas industry is unquestionably cyclical. While low oil prices may have slowed our development plans in 1998, the improvement in natural gas prices is very positive. We are focusing our energies to take advantage of the opportunities that downturns provide. We are building exploration prospects and undertaking projects that will help us to define our future path. PanAtlas is a public oil and gas company based in Calgary with common shares trading on The Toronto Stock Exchange under the Symbol "PA

To: Kerm Yerman who wrote (13463)	11/12/1998 8:10:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Berkley Petroleum Corp. Announces Closing of Offering TSE, ASE SYMBOL: BKP NOVEMBER 12, 1998 CALGARY, ALBERTA-- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES Berkley Petroleum Corp. announces that it has today closed its previously announced offering of 4,000,000 common shares at a price of $11.25 per share pursuant to its final prospectus dated November 3, 1998. The offering was underwritten by 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 & Co. Limited, Bunting Warburg Inc., ScotiaMcLeod Inc., Sprott Securities Limited and TD Securities Inc. Gross proceeds were $45,000,000. Proceeds from the issue will be used to fund Berkley's ongoing exploration, development and acquisition programs. 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". This news release shall not constitute an offer to sell, or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirement. Berkley Petroleum's News Releases for the past 14 months can be accessed electronically through Canadian Corporate News website at cdn-news.com

To: Kerm Yerman who wrote (13463)	11/12/1998 8:13:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / RETRANSMISSION: Summit Resources - Joint Venture - Northeastern British Columbia TSE SYMBOL: SUI NOVEMBER 12, 1998 CALGARY, ALBERTA--Summit Resources Limited announced today that it has concluded two transactions relative to its core natural gas operating area in northeastern British Columbia. Summit has been active in northeastern B.C. for the past five years, particularly in the Gunnel area, where it has been exploring for natural gas in the Jean Marie formation. Summit recently increased its position in Gunnel through an acquisition, which added 34,619 net acres to its land holdings and incremental production of 5.4 million cubic feet per day. Including the effect of this transaction, Summit has total land holdings of 192,437 gross acres (112,966 net) in the area and a production base of 12 million cubic feet per day of natural gas at Gunnel. To further strengthen the Company's position and to increase its opportunities for exploration and development in this area, Summit has entered into a joint venture agreement with Westminster Resources Ltd. This joint venture covers all of Summit's acreage in northeastern B.C. prospective for the Jean Marie formation and includes the disposition of a portion of Summit's interests in production and reserves in the Gunnel area. Under the terms of the agreement, Summit will receive an initial cash consideration in exchange for Westminster assuming a 50 per cent working interest in all of Summit's acreage, reserves and production in this core exploitation area, effective August 1, 1998. This will allow Summit, as operator, to accelerate its drilling program in 1999 and beyond with Westminster participating as to a 50 per cent interest in all future activities and operations. Drilling for 1999 will include three development wells, all of which can be tied-in to Summit's existing compression and dehydration facilities at Gunnel. In addition, three exploratory wells will be drilled in 1999. Proceeds from the disposition will be applied against outstanding debt. With estimated 1998 cash flow of $35 million, Summit expects its long-term debt to be in the range of $90 to $95 million at December 31, 1998. The common shares of Summit are listed for trading on The Toronto Stock Exchange under the symbol "SUI".

To: Kerm Yerman who wrote (13463)	11/12/1998 8:17:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Big Bear Exploration Ltd. Announces Share Offer to Acquire Blue Range Resource Corporation TSE SYMBOL: BDX NOVEMBER 12, 1998 CALGARY, ALBERTA-- THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Big Bear Exploration Ltd. ("Big Bear") announced today that it intends to make an all-share offer to purchase all of the outstanding Common Shares and associated rights of Blue Range Resource Corporation ("Blue Range"), a Calgary-based oil and gas exploration and development company. Based on publicly available information as of the close of business on November 11, 1998, the transaction value represented by the Offer is approximately $299 million, which includes $105 million of net debt in Blue Range as at June 30, 1998. The basis of the Offer will be 11 shares of Big Bear for each share of Blue Range. Big Bear has letter agreements from certain shareholders representing approximately 33 percent of the outstanding shares of Blue Range, who have agreed to tender their Blue Range shares to Big Bear's Offer unless a superior offer for all of the Blue Range shares is made prior to the expiry of the Big Bear take-over bid. "This proposed transaction is part of our strategic growth to become a leading Canadian natural gas and oil exploration and production company. Big Bear's operating strategy is to have large, concentrated land blocks with substantial working interests. In addition to adding attractive gas reserves and production capacity, this transaction would position Big Bear with cash flow to fund its exploration and acquisition opportunities in western Canada. Blue Range shareholders have an opportunity to rely on the credibility, proven track record and expertise of Big Bear Management, which should result in the creation of significant future shareholder value." said Jeff Tonken, Chairman & Chief Executive Officer of Big Bear. Big Bear has requested a shareholder list from Blue Range and anticipates mailing its Offer as soon as possible. Big Bear's Offer will expire approximately 21 days following its mailing. The Offer will be conditional on at least 35 percent of Blue Range's outstanding shares being tendered. The Offer will also be subject to the receipt of certain regulatory approvals and other conditions customary in these types of transactions, including the absence of any material change in the business, operations, capital, asset base and management compensation previously publicly disclosed by Blue Range. A conference call with Mr. Tonken to review this Offer will occur at 9:30am (Calgary Time) FRIDAY, NOVEMBER 13, 1998. TO PARTICIPATE, CALL 1-416-695-9712 AND REFERENCE RESERVATION NUMBER 752-169. Griffiths McBurney & Partners and Maison Placements Canada Inc. have been retained as financial advisors and dealer managers to Big Bear for the purposes of this transaction. The Big Bear shares have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such act. Focused on growing, Big Bear Exploration Ltd. is a Calgary based oil and gas company listed on The Toronto Stock Exchange under the symbol "BDX". Visit our website at www.bigbear.ca and reference Blue Range Question & Answer.

To: Kerm Yerman who wrote (13463)	11/12/1998 8:18:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Baytex Energy Announces Nine Months Operating Results TSE, ASE SYMBOL: BTE.A NOVEMBER 12, 1998 CALGARY, ALBERTA--Baytex Energy Ltd. (BTE.A - TSE, ASE) of Calgary is pleased to announce operating results for the nine months ended September 30, 1998. /T/ Three Months Ended Nine Months Ended September 30 September 30 Percent Percent 1998 1997 Change 1998 1997 Change -------------------- --------------------- Petroleum & Natural Gas Sales ($000s) 25,486 28,970 -12 73,296 91,488 -20 Cash Flow From Operations ($000s) 12,375 14,263 -13 32,714 46,305 -29 Per Share ($) - Basic 0.36 0.48 -25 0.96 1.57 -39 - Fully Diluted 0.35 0.48 -27 0.94 1.50 -37 Net Income ($000s) 571 1,380 -59 610 6,969 -91 Per Share ($) - Basic 0.02 0.04 -50 0.02 0.24 -92 - Fully Diluted 0.02 0.04 -50 0.02 0.23 -91 Capital Expenditures ($000s) 26,217 47,731 -45 106,914 128,200 -17 Long-term Debt ($000s) 191,509 91,764 109 191,509 91,764 109 Common Shares (000s) Weighted Average Basic 34,083 29,485 16 34,016 29,485 15 Weighted Average Fully Diluted 35,796 31,663 13 35,796 31,663 13 Daily Production Oil and Natural Gas Liquids (Bbl/d) 9,116 9,153 0 8,441 8,735 -3 Natural Gas (Mmcf/d) 75.7 74.8 1 76.5 81.2 -6 Oil Equivalent (Boe/d) 16,686 16,633 0 16,092 16,855 -5 Average Prices Oil and Natural Gas Liquids ($/Bbl) 14.77 20.66 -29 14.24 21.38 -33 Natural Gas ($/Mcf) 1.88 1.68 12 1.94 1.81 7 /T/ -------------------------------------------------------------- Note: In October 1997, Baytex completed a business combination with Dorset Exploration Ltd. which has been accounted for as a "pooling of interests". As a result, information contained herein is presented combining both companies' results for all of the periods prior to the business combination. ------------------------------------------------------------- Cash flow in the third quarter was $0.35 per share (fully diluted), an increase of 30 percent over the $0.27 per share in the second quarter. Net income for the third quarter was $0.02 per share (fully diluted) compared to a loss of $0.03 per share for the second quarter this year. Oil and liquids production averaged 9,116 barrels per day during the third quarter of 1998, representing an increase of 20 percent over the 7,606 barrels per day during the second quarter. Current production is approximately 11,000 barrels per day. At North Hoosier, a total of 27 oil wells were drilled and a battery was constructed which commenced operations in early October. Current production from this area is 3,000 barrels per day based on 40-acre spacing development. The Company intends to monitor production performance and will consider further down spacing development in 1999. At Carruthers, where current production is 2,000 barrels per day, a total of 12 development wells are being drilled and should add approximately 500 barrels per day of production in early 1999. At Reward, up to six development wells are planned for this winter, which are expected to double the current production of 350 barrels per day by early 1999. Gas production averaged 75.7 million cubic feet per day during the third quarter, compared to 78.8 million cubic feet per day in the previous quarter. Current production is approximately 70 million cubic feet per day. Miscellaneous tie-ins at Alder Flats, Ferrier, Bon Accord and Red Earth should add 5.0 million cubic feet per day by year-end. Baytex is planning a 20-well winter development program in the northern area at Joan/Goodfish and Red Earth, which is expected to increase production by 10 million cubic feet per day during the first quarter of 1999. Oil prices continue to languish with WTI crude averaging U.S. $14.15 in the third quarter, compared to U.S. $14.70 in the second quarter. However, heavy oil differentials narrowed significantly during this period such that Baytex's average wellhead price improved to $14.77 per barrel in the third quarter compared to $13.93 per barrel in the second quarter. Gas price averaged $1.88 per mcf in the third quarter compared to $1.95 in the second quarter. Fourth quarter gas price is projected to be strong and should average in the $2.25 per mcf range. During the first nine months, Baytex participated in the drilling of 152 (138.6 net) wells, resulting in 79 (76.0 net) oil wells, 40 (32.6 net) gas wells and 33 (30.0 net) dry holes. The overall success ratio was 78 percent (78 percent net). Baytex is currently marketing certain oil and gas properties for disposition. These properties are producing a combined 3,400 BOE per day with the majority being natural gas. The objectives of this program are to focus the Company's operations in areas where long-term growth is targeted, while reducing the overall debt leverage of the Company. This will improve operating and financial flexibility. The results of this disposition program should be finalized by year-end. Baytex is an intermediate, oil and gas exploration and production company whose shares are traded on The Toronto Stock Exchange and The Alberta Stock Exchange under the trading symbol "BTE.A".

To: Kerm Yerman who wrote (13463)	11/12/1998 8:35:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Fortune Energy Inc. 'Going Private' Transaction and Recent Company Developments TSE SYMBOL: FEY NOVEMBER 12, 1998 CALGARY, ALBERTA-- "GOING PRIVATE" TRANSACTION Fortune Energy Inc. ("Fortune") announces that it has entered into an Amalgamation Agreement with 798374 Alberta Ltd. ("798374"), a wholly-owned subsidiary of Fortune Equity Inc. ("Fortune Equity"). The amalgamation will effect the previously announced "going private" transaction whereby Fortune Equity, a corporation which directly owns, together with its associates and affiliates, approximately 86 percent of the outstanding common shares of Fortune, will acquire through 798374 all of the outstanding shares of Fortune which it does not presently own. Pursuant to the amalgamation, minority shareholders of Fortune will receive $.80 in respect of each Fortune common share which they hold. The amalgamation, including in particular the consideration to be received by the minority shareholders of Fortune, has been considered by the special committee of Fortune's board of directors. The special committee has also received a valuation and fairness opinion from Sayer Securities Limited ("Sayer") which indicates that the consideration to be received by the minority Fortune Energy shareholders exceeds the high end of the range of values as determined by Sayer, and is fair, from a financial point of view, to such minority shareholders. Based on the special committee's deliberations and the Sayer valuation and fairness opinion, the special committee recommended to the board of directors of Fortune that the Amalgamation Agreement be approved and submitted to the minority shareholders of Fortune for approval. The board of directors of Fortune has approved the Amalgamation Agreement, and recommends that it be approved by the minority shareholders of Fortune at a special meeting which has been called for December 18, 1998. Fortune plans to mail, on or about November 13, 1998 a notice of the special meeting and related shareholder materials to its shareholders of record on November 10, 1998. The material will include a copy of the Sayer valuation and fairness opinion. RECENT COMPANY DEVELOPMENTS Fortune Energy Inc. further announces that it has signed a purchase and sales agreement dated October 30, 1998 covering the acquisition of oil and gas properties for $10.52 million from a major oil and gas producer. The acquisition is effective July 1, 1998 and a closing date for the transaction is set for December 17, 1998. The properties are in the Widewater/Mooney area, 140 miles northwest of Edmonton, Alberta and consist of a 50 percent working interest in 7,360 gross acres of land, four producing high volume light oil wells, seven suspended oil wells and one suspended gas well. The four Gilwood, Widewater field producing oil wells averaged 405 bopd (net) to August, 1998. Proved and probable reserves are evaluated at 1.1 million bbls of oil and 0.3 bcf of gas. Company proved and probable reserves as of October 1, 1998 are 2.5 million bbls of oil and 10.9 bcf of gas. Projected net operating income from this property in 1999 is $2.3 million compared to current company cash flow of $1.8 million for the first nine months of 1998. The acquisition will be funded by the Company through additional borrowing under its bank line of credit and a loan from the Company's principal shareholder, Fortune Equity Inc. Other recent developments include the commencement on October 24, 1998 of the horizontal portion of the 9-29 oil well discovery in the House Creek area. The 9-29/16-29 hz well is currently being evaluated to establish commercial productivity. As of October 1, 1998, 0.3 million bbls. of proven and probable reserves have been assigned to this well. The valuation and fairness opinion has considered all "Recent Company Developments" and these are considered in the recommendation made by the board of directors of Fortune to the minority shareholders. Fortune is an independent Canadian oil and gas exploration, development and production company with common shares trading on The Toronto Stock Exchange under the symbol FEY.

To: Kerm Yerman who wrote (13463)	11/12/1998 8:41:00 PM
From: Herb Duncan	Respond to of 15196

TSE SYMBOL: PUT EARNINGS / Pursuit Resources - 1998 Third Interim Report NOVEMBER 12, 1998 TSE SYMBOL: PUT Although crude oil prices continued to remain low during the third quarter, the prices received for heavy gravity crude oil increased significantly during the quarter as demand for that product increased and the diluent costs associated with transporting heavy oil decreased. With the approach of the winter heating season, natural gas prices began to increase during the quarter and Pursuit was able to hedge approximately one third of its gas production for the next twelve months at very attractive prices. During the third quarter, significant production gains were realized from the recently acquired Auburndale property. /T/ HIGHLIGHTS -------------------------------------------------------------- Three Months Ended Nine Months Ended September 30 September 30, Percent Percent 1998 1997 Change 1998 1997 Change -------------------------------------------------------------- Financial (millions, except per share amounts) -------------------------------------------------------------- Oil and Gas Revenue $5.7 $5.7 --- $16.5 $18.4 (10) Funds Flow from Operations 1.8 2.5 (26) 5.8 8.5 (33) Per Share .08 0.10 (20) 0.24 0.36 (33) Net Earnings (Loss) (0.6) 0.1 - (1.5) 1.1 - Per Share (0.02) 0.01 - (0.06) 0.05 - Capital Expenditures 1.6 3.0 (47) 9.5 13.7 (31) Weighted Average Shares Outstanding (millions) 24.3 23.5 3 24.3 23.5 3 -------------------------------------------------------------- -------------------------------------------------------------- Operating -------------------------------------------------------------- Production Oil - bbls/d 1,706 1,637 4 1,636 1,618 1 Natural Gas - mmcf/d 22.2 18.4 21 21.8 18.3 19 Combined (boe/d) 3,923 3,473 13 3,820 3,449 11 Prices Oil - $/bbl $11.97 $18.61 (36)$12.33 $20.99 (41) Natural Gas - $/mcf $1.86 $1.71 9 $1.85 $1.83 1 -------------------------------------------------------------- Wells Drilled (net) -------------------------------------------------------------- Oil 5 (0.7) --- 8 (1.3) 17(10.7) Gas 4 (3.8) 5(3.2) 14(12.0) 17(11.4) Dry 1 (0.4) 2(0.5) 3 (1.4) 7(3.5) ---------------- ------------------ Total 10 (4.9) 7(3.7) 25 (14.7) 41(25.6) Success rate - net (percent) 92 86 90 86 /T/ MESSAGE TO SHAREHOLDERS OPERATIONS Based on the improvement in heavy crude oil prices during the quarter, Pursuit has selectively returned previously shut-in wells to production and has accelerated development work in the recently acquired Auburndale property. Heavy crude prices are expected to remain at a level which provides for attractive netbacks in those properties, such as Auburndale, which have low operating costs. Additional compression facilities have been put into service or are in the process of being installed in the Chigwell and Leo gas areas. These systems modifications will provide for increased gas production volumes during the winter heating season commencing in November. Natural gas prices on the futures market have improved to the extent that Pursuit has sold forward approximately 45 percent of its current production for periods of up to 12 months. Prices received for these forward sales range from $3.00 per thousand cubic feet for the winter heating season and $2.50 to $2.75 per thousand cubic feet for a full twelve month period. These prices represent a significant increase over prices received in previous comparable periods. EXPLORATION AND DEVELOPMENT Development activity continues for gas and oil exploitation opportunities identified on the Auburndale property. Production optimization projects and recompletions have increased oil equivalent production from 210 boe per day when the property was acquired to 350 boe per day at present. An additional section of land with a prospective gas target has recently been acquired. As a result of improved heavy oil prices and the low operating costs in the Auburndale area, three additional recompletions will be carried out in the fourth quarter of this year. Significant production additions are planned for 1999. A project involving the tie-in of two gas wells in the Doucette area of Alberta is underway. This activity will increase gas production by 1.5 million cubic feet per day. Subsequent to the acquisition of an eleven section block of Crown lands in the Pendent d'Oreille area of southern Alberta, a shallow gas development program has been initiated. Five wells will be drilled and placed on production in 1998 and additional drilling will see the property more fully developed next year. Pursuit participated in the drilling of a successful gas discovery in the West Pembina area of central Alberta. Based on the well results, Pursuit acquired an interest in two additional sections of land offsetting the well, increasing the Company's land holdings in the area to 6.5 sections. It is expected that additional drilling will be conducted on this property early next year at which time the wells will be tied-in to the gathering system in the area. The Inga BC area Halfway gas project has been evaluated and a 1999 drilling and facility program has been established. This activity will increase the existing production from this property. Exploration activity in the Princess area of southeastern Alberta included the acquisition of two sections of land offsetting the existing Pursuit producing property. A 3-D seismic program has been completed on the new lands and an exploration well will be drilled prior to year end. Pursuit has initiated exploration activity on its landholdings in the Musreau-Kakwa area in northwestern Alberta where several deep gas discoveries have been announced by area operators. A seismic program will be conducted on the Pursuit lands during the fourth quarter. FINANCIAL During the first three quarters of 1998, Pursuit's production volumes increased 11 percent to 3,820 barrels of oil equivalent per day from 3,449 barrels of oil equivalent per day for the first nine months of 1997. Natural gas production increased 19 percent during the period to 21.8 million cubic feet per day from 18.3 million cubic feet per day for the comparable 1997 period, while oil production increased slightly to 1,636 barrels per day in 1998 from 1,618 barrels per day in 1997. Third quarter 1998 production totaled 3,923 barrels of oil equivalent per day, up from 3,786 barrels of oil equivalent per day in the second quarter. This increase reflects the effects of the Company's 1998 exploration and development programs. Third quarter production additions included a full quarter of production from the second quarter Basal Quartz gas discovery at Chigwell, the Leo wells drilled in the second quarter and production optimization work undertaken at the Auburndale property. Oil and gas revenues continued to be negatively impacted during the first nine months by persisting low oil prices and natural gas liquids prices. Oil and gas revenues for the first three quarters of 1998 decreased 10 percent to $16.5 million from $18.4 million for the 1997 period despite significant production additions. Pursuit's realized price, before hedging, for crude oil and natural gas liquids averaged $14.04 per barrel for the first nine months of 1998, a 36 percent decrease versus the comparable 1997 period. West Texas Intermediate oil futures on the NYMEX exchange averaged $US 14.92 for the first nine months of 1998 compared to $US 20.84 for the first three quarters of 1997, a 28 percent decrease. Pursuit's average price was further impacted in 1998 by the effects of significantly lower natural gas liquids prices and wider medium to heavy gravity price differentials through the first half of the year. The effects of a foreign exchange hedge put in place in 1997, and which terminates at the end of 1998, reduced the Company's realized price, after hedging, to $12.33 per barrel for the first three quarters of 1998. The Company realized a gas price of $1.85 per thousand cubic feet in the first three quarters of 1998, compared to $1.83 per thousand cubic feet for the 1997 period. Despite NYMEX gas prices being below historic seasonal levels, Canadian gas markets have continued to strengthen in anticipation of imminent additional export transportation capacity. In order to provide enhanced certainty of cash flow to finance the Company's 1999 capital expenditure program, Pursuit has hedged, on average, 9 million cubic feet per day for the 1998 - 1999 gas year at a weighted average field price of $2.58 per thousand cubic feet. Funds from operations decreased 33 percent for the first three quarters of 1998 to $5.8 million ($0.24 per share) from $8.5 million ($0.36 per share) for the first nine months of 1997. In addition to reduced revenues from lower oil prices, Pursuit has incurred increased interest expense in 1998 related to increased borrowings under the Company's credit facility and recent increases in interest rates. For the nine months ended September 30, 1998, Pursuit realized a net loss of $1.5 million ($0.06 per share). OUTLOOK While crude oil reference prices have not strengthened significantly, Pursuit expects improved oil price realizations in the fourth quarter due to a substantial reduction in the medium and heavy gravity price differentials. Narrowing transportation and market differentials have continued to improve the fourth quarter 1998 and 1999 outlook for gas prices in western Canada. Based on current commodity price expectations, Pursuit is projecting a significant improvement in cash flow in 1999. This increased cash flow is expected to exceed the budgeted capital expenditure program of $13.0 million and will result in a 1999 debt to cash flow ratio of 2 to 1, in line with Pursuit's long term objective. The activities required to generate the projected growth in production are in the Company's project inventory. Any significant increase in oil prices should allow Pursuit to accelerate its projected growth. /T/ CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (thousands except per share amounts)(unaudited) Three Months Ended Nine Months Ended September 30 September 30 ------------------------------------- 1998 1997 1998 1997 ------------------------------------- Revenue Oil and gas $ 5,680 $ 5,698 $ 16,548 $ 18,426 Royalties, net (858) (793) (2,603) (2,741) ------------------------------------- 4,822 4,905 13,945 15,685 ------------------------------------- Expenses Production 1,865 1,431 4,845 4,454 Administrative 556 532 1,763 1,484 Interest 539 381 1,447 987 Depletion, depreciation and amortization 2,711 2,191 7,870 6,435 ------------------------------------- 5,671 4,535 15,925 13,360 ------------------------------------- Earnings (loss) before income taxes (849) 370 (1,980) 2,325 ------------------------------------- Income taxes Capital taxes 44 105 135 216 Deferred taxes (recovery) (314) 140 (619) 970 ------------------------------------- (270) 245 (484) 1,186 ------------------------------------- Net earnings (loss) $ (579) $ 125 $ (1,496) $ 1,139 ------------------------------------- Net earnings (loss) per share $ (0.02) $ 0.01 $ (0.06) $ 0.05 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION (thousands except per share amounts)(unaudited) Three Months Ended Nine Months Ended September 30 September 30 ------------------------------------- 1998 1997 1998 1997 ------------------------------------- Cash provided by (used in) Operating Activities Net earnings (loss) $ (579) $ 125 $ (1,496) $ 1,139 Items not affecting cash Depletion, depreciation and amortization 2,711 2,191 7,870 6,435 Deferred income taxes (314) 140 (619) 970 ------------------------------------- Funds from operations 1,818 2,456 5,755 8,544 Change in non-cash working capital (2,715) (4,299) (1,930) 122 ------------------------------------- (897) (1,843) 3,825 8,666 ------------------------------------- Financing Activities Share capital (50) (45) (447) 30,094 Long-term debt 2,680 4,840 7,165 19,295 ------------------------------------- 2,630 4,795 6,718 49,389 ------------------------------------- Cash available for investing 1,733 2,952 10,543 58,055 ------------------------------------- Investing Activities Additions to oil and gas properties (1,571) (2,952) (9,461) (13,705) Acquisition of oil and gas properties, net (162) --- (1,082) (44,350) ------------------------------------- (1,733) (2,952) (10,543) (58,055) ------------------------------------- Change in cash position --- --- --- --- Cash position, beginning of period --- --- --- --- ------------------------------------- Cash position, end of period $ --- $ --- $ --- $ --- ------------------------------------- Funds from operations per share $ 0.08 $ 0.10 $ 0.24 $ 0.36 CONDENSED CONSOLIDATED BALANCE SHEETS (thousands) September 30 December 31 1998 1997 ------------ ----------- (unaudited) Assets Current assets $ 4,728 $ 5,233 Oil and gas properties, net 87,877 84,821 ----------------------------- $ 92,605 $ 90,054 ----------------------------- Liabilities and Shareholders' Equity Current liabilities $ 5,412 $ 7,847 Long-term debt 36,680 29,515 Provision for future site restoration 925 542 Deferred income taxes 2,133 2,752 ----------------------------- 45,150 40,656 ----------------------------- Shareholders' Equity Share capital 45,455 45,902 Retained earnings 2,000 3,496 ----------------------------- 47,455 49,398 ----------------------------- $ 92,605 $ 90,054 ----------------------------- CORPORATE INFORMATION Board of Directors D. Nolan Blades Gerald J. DeSorcy Olivier de Vregille Harvey L. Johnson David H. Kennedy Douglas R. Martin Auditors KPMG LLP, Calgary, Alberta Legal Counsel Burstall Ward, Calgary, Alberta Bankers Royal Bank of Canada, Calgary, Alberta Reserve Evaluation Engineers Fekete Associates Inc., Calgary, Alberta Officers and Key Personnel D. Nolan Blades President and Chief Executive Officer Douglas R. Martin Chairman and Chief Financial Officer Judy Dingwall Controller John L. Fenniak Vice President, Business Development Bill Ibbitson Vice President, Operations Kurt Miles Vice President, Land and Contracts Cam Sebastian Vice President, Finance Harley L. Winger Secretary Chris Zinkan Vice President, Exploration

To: Kerm Yerman who wrote (13463)	11/12/1998 8:46:00 PM
From: Herb Duncan	Respond to of 15196

SERVICE SECTOR / NQL Drilling Tools Inc. Reports Fourth Quarter and Year End Results TSE SYMBOL: NQL.A NOVEMBER 12, 1998 NISKU, ALBERTA-- /T/ Thousands of Canadian $, except per share figures For The Year Ended August 31, August 31, 1998 1997 Revenues $ 61,289 $ 36,390 Income From Continuing Operations $ 9,494 $ 6,411 - Per Share $ 0.64 $ 0.56 Net Income $ 9,807 $ 6,597 - Per Share $ 0.66 $ 0.58 Cash Flow From Continuing Operations $ 16,033 $ 10,276 - Per Share $ 1.07 $ 0.90 Cash Flow From Operations $ 16,033 $ 10,855 - Per Share $ 1.07 $ 0.95 EBITDA From Continuing Operations $ 22,734 $ 14,783 - Per Share $ 1.52 $ 1.30 EBITDA $ 23,047 $ 15,378 - Per Share $ 1.54 $ 1.35 Average Shares Outstanding 14,918,665 11,397,835 Thousands of Canadian $, except per share figures For The Three Months Ended August 31, August 31, 1998 1997 Revenues $ 14,207 $ 11,946 Income From Continuing Operations $ 1,158 $ 2,537 - Per Share $ 0.08 $ 0.22 Net Income $ 1,140 $ 2,695 - Per Share $ 0.08 $ 0.24 Cash Flow From Continuing Operations $ 2,936 $ 3,626 - Per Share $ 0.20 $ 0.32 Cash Flow From Operations $ 2,936 $ 4,116 - Per Share $ 0.20 $ 0.36 EBITDA From Continuing Operations $ 4,245 $ 5,007 - Per Share $ 0.28 $ 0.44 EBITDA $ 4,227 $ 5,281 - Per Share $ 0.28 $ 0.46 Average Shares Outstanding 14,918,665 11,397,835 (x) earnings and cash flow per share figures for the previous 3 quarters, when added to fourth quarter results, vary slightly from year end totals as a result of the dilutive effect of shares issued during the year. /T/ Revenues for the year ended August 31, 1998 increased by 68 percent to $61.3 million from $36.4 million the preceding year. Similarly, Income from Continuing Operations grew by 48 percent to $9.5 million ($0.64 per share) from $6.4 million ($0.56 per share) and Cash Flow from Continuing Operations improved by 56 percent to $16 million ($1.07 per share) from $10.3 million ($0.90 per share). For the fourth quarter ended August 31, 1998, Gross Revenues grew by 19 percent to $14.2 from $11.9 million in the corresponding period the previous year. Income from Continuing Operations was down by 54 percent to $1.2 million ($0.08 per share) from $2.5 million ($0.22 per share) and Cash Flow from Continuing Operations dropped by 19 percent to $2.9 million ($0.20 per share) from $3.6 million ($0.32 per share). The decline in the fourth quarter financial performance was largely due to depressed market conditions in the Oil & Gas Industry. In Canada, there was a decline of 50 percent in horizontal and directional wells drilled compared to the previous year. During the past year, focus on international expansion has resulted in a greater percentage of revenues being derived from international markets with 50 percent of total revenues having been generated from markets outside of Canada. Management will continue to focus on international expansion for the remainder of fiscal 1999. The economic climate of the drilling industry is expected to continue to impact upon the financial performance of the Company. In addition to strategic international expansion, Management will continue to identify opportunities to develop or acquire complementary products to its core Black Max Motors thereby ensuring both geographic and product diversity. THE COMPANY NQL Drilling Tools Inc. is an industry leader in providing downhole tools and technology used primarily in drilling applications in the oil and gas, environmental and utility industries on a worldwide basis. Black Max(TM) is a registered trademark of Black Max Downhole Tool Ltd. Beaver(TM) is a registered trademark of NQL Drilling Tools Inc.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:21:00 PM
From: Kerm Yerman	Respond to of 15196

ASE - NEW LISTING / Solana Petroleum Corp CALGARY, Nov. 12 /CNW/ - Solana Petroleum Corp. (''Solana'') announces that its common shares began trading on The Alberta Stock Exchange on Friday, November 6, 1998, under the stock symbol ''SOP''. The Company also announces the following: The Colombian state oil company, Empresa Colombiana de Petroleos (''Ecopetrol''), has given its preliminary approval for the participation of Solana Petroleum Exploration (Colombia) Limited (''Solana Colombia''), a wholly-owned subsidiary of Solana, in petroleum exploration activities in Colombia under the Tapir Association Contract. The Tapir Contract Area lies in the central portion of the Llanos Basin of Eastern Colombia, in an area of known oil accumulations. Numerous producing fields are located on all sides of the Contract Area and a trunkline connection to Colombia's main export pipeline and terminal system passes through the Tapir Block. Solana's interest was purchased from Heritage Minerals Ltd. Well logs from the ''Mateguafa No. 1'' well, which was drilled earlier this year in the Tapir Contract Area, indicated the potential presence of multiple pay zones. This well was not production-tested because of rainy season flooding in the area. A test rig has been contracted to commence such testing in December of this year. In the event the well tests are successful, a second well will be drilled at Mateguafa early next year. Simultaneously with testing the ''Mateguafa No. 1'' next month, an exploration well will be drilled in the ''Caporal'' prospect, also located within the Tapir Contract Area. Geologic and seismic studies indicate that the Caporal prospect has the potential to contain up to 190 million barrels of oil. Solana Colombia has also contracted to acquire, subject to approval by Ecopetrol, a 50% participating interest in the Cano Caranal Association Contract. The Contract Area covers approximately 223,000 square kilometers in the Northern Llanos Basin. The Cano Caranal Contract Area is in the vicinity of several large producing oil fields, including Occidental Petroleum Corporation (''Occidental''), Ecopetrol and Repsol's Cano Limon field, which originally contained over one billion barrels of recoverable reserves. The main pipeline from Cano Limon to the deep-water export terminal at Covenas, passes through the northern portion of the Cano Caranal Block. Considerable geologic and seismic work has been completed in the Cano Caranal Contract Area by Occidental and Mohave Colombia Corporation (''Mohave''). This has resulted in the identification of a number of significant ''prospects'' and ''leads'', containing potentially large volumes of hydrocarbons. Eleven prospects with target reserves exceeding 50 million barrels of oil have been identified on the Cano Caranal Block. Additional seismic work is scheduled on the Contract Area in December of this year to further delineate the largest drilling target, the ''N'' structure. This prospect could contain oil reserves of up to 255 million barrels. The drilling of an exploration well on the ''N'' structure will depend on the results derived from the seismic survey, expected to be completed by yearend. The Operator for both the Tapir and Cano Caranal Association Contracts is Mohave, which is a subsidiary of Mohave Oil and Gas Corporation of Houston, Texas. The Principals of Solana Petroleum Corp. who collectively have over 150 years experience in the petroleum business, are as follows: James B. Taylor, Chairman of The Board and Director, has been an oil and gas consultant since January, 1997. From December, 1993 to December, 1996, he was Executive Vice-President of Occidental Oil and Gas Corporation and Vice-President of Occidental Petroleum Corporation. Mr. Taylor was a director of Arakis Energy Corp., an international oil and gas company listed on NASDAQ, from June, 1997 until its sale in October, 1998 to Talisman Energy Corporation. J. Bruce Carruthers II, President, Chief Executive Officer and Director, co-founded and is President and Chairman of Hexagon Resources Inc., an international mining exploration and development company. Mr. Carruthers was Director of International Trade for Occidental Oil & Gas Corp. from 1987 to 1989 and was Petroleum Supply Manager for Occidental of Colombia Inc. (Bogota) from 1985 to 1987. Raymond P. Cej, Director, served as President and Chief Executive Officer of Arakis Energy Corp., an international oil and gas company listed on NASDAQ, from February, 1998 until its sale in October, 1998 to Talisman Energy Corporation. From November, 1996 to January, 1998, he was President and Chief Executive Officer of Kyrgoil Corp., an oil and gas company listed on The Toronto Stock Exchange. Prior to that, Mr. Cej held numerous senior executive positions with Shell Canada Ltd., the last being Senior Operations Officer. Oscar A. Blake, Vice-President Business Development and Director, has been a consultant to the oil and gas industry since September, 1996. From 1987 to 1996, he was General Counsel and Executive Vice-President for Occidental Oil and Gas Corporation, focusing on business development and strategic initiatives. William W. Root, Chief Financial Officer and Director, has been a consultant to the oil and gas industry since March, 1991. He has been Vice-President Operations for Dimensions West Energy Corp., an oil and gas company listed on The Vancouver Stock Exchange, since January, 1998 and a director of Bellringer Resources Ltd. Mr. Root was a Supervisor of Engineering - Drilling and Completions from 1989-1990, a Drilling Superintendent from 1985 to 1989 and Offshore Senior Drilling Supervisor from 1984 to 1985 for British Petroleum Resources Canada. Wayne R. Stromme, Vice-President Canadian Operations, Secretary and Director, has been President of W.R. Stromme International Ltd., a private consulting company since 1997. Prior to that, Mr. Stromme spent 22 years managing retail and wholesale grocery operations in British Columbia and Alberta for Jim Pattison Industries. Nicolas S. Swagor, Director, has been President and a director of Bison Resources Ltd., an oil and gas company listed on The Alberta Stock Exchange, since 1997. From 1994 to 1997, he was Vice-President Exploration and subsequently President of Outrider Resources Ltd., an oil and gas company listed on The Alberta Stock Exchange. He was also a director of Outrider Resources Ltd. from 1994 to 1997. Since 1986, Mr. Swagor has been President of Nicata Investment Corp., a private consulting company.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:23:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Pason Systems Corp. Third Quarter Report CALGARY, Nov. 12 /CNW/ - Pason reports record third quarter results for the period ending September 30, 1998, with net earnings up 14% and cash flow up 39% over third quarter 1997. (all numbers in '000's except per share amounts) Three Months Nine Months 1998 1997 Chg. % 1998 1997 Chg.% Revenue ('000's) $5,944 $3,347 +78 $18,173 $8,047 +126 Cash Flow ('000's) $1,940 $1,391 +39 $6,180 $3,477 +78 Net Income ('000's) $1,169 $1,027 +14 $3,969 $2,443 +62 Basic Avg. Shares O/S 16,149 13,878 16,085 13,815 Earnings Per Share $0.072 $0.074 $0.247 $0.177 Fully Diluted Avg. Shares O/S 17,640 16,297 17,509 15,543 Earnings Per Share $0.066 $0.065 $O.227 $0.157 (for more detailed financial information visit Pason's website at www.pason.com) After a slight July rebound in rig activity from the second quarter, rig activity declined steadily throughout the quarter in both Canada and the United States. This severely restricted the market size in Canada for Pason rental products. In the U.S. where the market for electronic drilling recorders is just developing, the lack of optimism was a deterrent to customers considering changing to a new technology. However, despite these obstacles, Pason still increased sales by $2.6 million in the quarter, up 78% from the third quarter in 1997. More importantly, this revenue was generated with an average utilization rate of only 39% on Pason equipment, which suggests considerable upside when activity levels improve. Although it appears that Pason's margins have deteriorated markedly since 1997, in the core rental business there has actually been little erosion. The 1998 results include the mudlogging results of the U.S. subsidiary, Pason RMGE Corp. Mudlogging operations are profitable but margins are limited to about 40% because of the use of onsite labour. Pason's rental margin (EDR and PVT rentals less rental expenses) declined from 82% in 1997 to 74% in 1998, however most of that decline was attributable to setting up U.S. fieldmen coverage in advance of significant work and should improve in 1999 as U.S. volume increases. Pason electronic Tour Sheets are gaining popularity and with the launch of an Internet data hub in the first quarter of 1999, the need for electronic drilling recorders becomes even more compelling to its customers. This will especially help the transition from mechanical to electronic drilling recorders in the United States. Immediately subsequent to the quarter end, Pason received a commitment from a major U.S. drilling contractor to install the EDR system on all of its rigs. This, combined with lesser breakthroughs with some smaller contractors, should allow Pason to more than offset the reduction in its Canadian market with expansion in the United States.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:25:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Canadian Natural Reports Increasing Quarterly Cash Flow CALGARY, Nov. 12 /CNW/ - Canadian Natural Resources Limited announces its unaudited financial results and supplementary operating data for the three and nine months ended September 30, 1998. Cash flow per barrel of oil equivalent showed significant improvement to $9.20 in the third quarter of this year from $7.92 in the second quarter of the year. This contributed to an increase in Canadian Natural's third quarter cash flow to $119.1 million ($1.20 per share), an increase of 17% over the $102.0 million realized in the second quarter of the year. Improved netbacks from the sale of oil in the third quarter have been realized in a period of weak West Texas Intermediate light oil pricing as a result of the narrowing of price differentials between light crude oil and Canadian Natural's oil mix. A reduction in the cost of condensate required for blending with heavier oil qualities has also contributed to the increased netbacks. Natural gas prices continued to strengthen and the price realized by Canadian Natural increased by 16% in the third quarter of 1998 compared to the same period in the prior year. Despite the sale, effective August 1, 1998, of a property which had a producing capability of approximately 2,500 barrels of oil per day and 12 million cubic feet of natural gas per day Canadian Natural's third quarter production levels grew year over year to average over 74,000 barrels of oil per day and over 663 million cubic feet of natural gas per day. Canadian Natural's overall production levels for the nine months ended September, 30, 1998 increased 10% to over 142,000 barrels of oil equivalent and remained reasonably balanced with 53% of the production comprising oil and liquids and 47% comprising natural gas. Canadian Natural continues to achieve one of its fundamental business principals of cost control by further reducing overall cash expenses, including operating costs, on a per barrel of oil equivalent basis during both the three months and the nine months ended September 30, 1998 from the levels achieved in the same periods of 1997. Through this extended period of low world prices for crude oil Canadian Natural continues to report earnings amounting to $20.9 million ($0.21 per share) for the third quarter of 1998 and $35.5 million ($0.36 per share) for the nine months ended September 30, 1998. Canadian Natural's net capital expenditures amounted to $76.0 million in the third quarter of the year and $458.8 million for the nine months ended September 30, 1998. These expenditures are down 70% and 47% respectively from the comparable 1997 periods. The total net expenditures have been reduced by an amount of $127.5 million representing proceeds from the sale of the producing property which was subject to certain production restrictions pending resolution of an agreement to share a common oil pool. Canadian Natural continues to achieve control of its finding and onstream costs as the cost of the net additional proven and probable reserves added by the Company to the end of September, 1998 amounts to $5.75 per barrel of oil equivalent. --------------------------- --------------------------- --------------------------- --------------------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 1998 1997 % 1998 1997 % Change Change --------------------------- --------------------------- --------------------------- --------------------------- FINANCIAL ( thousands, except per share amounts) Gross revenues $ 223,832 $ 222,397 + 1 $ 633,949 $ 673,735 - 6 Cash flow $ 119,073 $ 118,820 - $ 316,470 $ 371,987 -15 Per share $ 1.20 $ 1.21 - 1 $ 3.19 $ 3.80 -16 Net income $ 20,891 $ 25,786 -19 $ 35,472 $ 88,394 -60 Per share $ 0.21 $ 0.26 -19 $ 0.36 $ 0.90 -60 OPERATING Oil and natural gas liquids Daily production (barrels) 74,380 72,333 + 3 75,613 68,611 +10 Netback per barrel Sales price $ 15.30 $ 18.52 -17 $ 13.00 $ 19.48 -33 Royalties 1.79 3.01 -41 1.66 3.25 -49 Operating costs 4.60 4.81 - 4 4.69 4.95 - 5 --------------------------- --------------------------- $ 8.91 $ 10.70 -17 $ 6.65 $ 11.28 -41 --------------------------- --------------------------- Natural gas Daily production (million cubic feet) 663.3 637.0 + 4 669.2 611.0 +10 Netback per thousand cubic feet Sales price $ 1.95 $ 1.68 +16 $ 2.00 $ 1.85 + 8 Royalties 0.23 0.27 -15 0.27 0.31 -13 Operating costs 0.33 0.35 - 6 0.34 0.34 - --------------------------- --------------------------- $ 1.39 $ 1.06 +31 $ 1.39 $ 1.20 +16 --------------------------- --------------------------- Combined (per barrel of oil equivalent)(x) Daily production 140,709 136,030 + 3 142,529 129,711 +10 Sales price $ 17.29 $ 17.77 - 3 $ 16.30 $ 19.03 -14 Royalties 2.03 2.84 -29 2.17 3.17 -32 Operating costs 4.01 4.19 - 4 4.08 4.21 - 3 --------------------------- --------------------------- Netback per boe $ 11.25 $ 10.74 + 5 $ 10.05 $ 11.65 -14 Administration 0.35 0.20 +75 0.36 0.25 +44 Interest 1.51 0.83 +82 1.35 0.69 +96 Capital taxes 0.19 0.22 -14 0.20 0.21 - 5 --------------------------- --------------------------- Cash flow per boe $ 9.20 $ 9.49 - 3 $ 8.14 $ 10.50 -22 --------------------------- --------------------------- (x)(10 mcf of natural gas = 1 barrel of oil) CAPITAL EXPENDITURES (thousands) Net property acquisitions (dispositions) $ (50,788) $ 98,929 -151 $ (18,275) $ 321,597 -106 Land acquisitions and retention 15,553 5,114 +204 31,636 87,065 -64 Seismic evaluations 1,664 5,800 -71 16,982 28,828 -41 Well drilling and equipping 56,781 89,082 -36 236,366 263,419 -10 Pipeline and production facilities 52,768 56,637 - 7 192,116 162,787 +18 --------------------------- --------------------------- Total $ 75,978 $ 255,562 -70 $ 458,825 $ 863,696 -47 --------------------------- --------------------------- ------------------------------------------ NINE MONTHS ENDED SEPTEMBER 30 1998 1997 ------------------------------------------ DRILLING PROGRAM (number of wells) Gross Net Gross Net Oil 122 109.4 398 363.1 Gas 195 174.3 189 168.2 Injection/Strat test 16 11.5 - - Dry 50 36.5 68 62.0 ------------------------------------------ 122 383 331.7 655 593.3 ------------------------------------------ Success Rate 89% 90% SEPTEMBER 30, 1998 NET UNDEVELOPED LAND (thousands of acres) British Columbia 803,742 Alberta 2,974,055 Saskatchewan 586,558 Other 376,305 ------------------ Total 4,740,660 NINE MONTHS ENDED SEPTEMBER 30 1998 1997 STATEMENT OF EARNINGS (thousands) Income Oil and natural gas $ 633,949 $ 673,735 Less: royalties 84,434 112,114 ------------ ------------ $ 549,515 $ 561,621 ------------ ------------ Expenses Production $ 158,847 $ 148,961 Administration 14,088 8,729 Interest 52,503 24,485 Capital taxes 7,607 7,459 Unrealized foreign exchange loss 1,010 3,607 Depreciation, depletion, amortization 242,685 208,536 ------------ ------------ $ 476,740 $ 401,777 ------------ ------------ Earnings before income taxes $ 72,775 $ 159,844 Deferred income taxes 37,303 71,450 ------------ ------------ Net earnings $ 35,472 $ 88,394 ------------ ------------ ------------------ ----------------- SEPTEMBER 30, 1998 DECEMBER 31, 1997 ------------------ ----------------- CONDENSED BALANCE SHEET (thousands) Assets Current assets $ 215,983 $ 185,100 Capital assets 2,968,959 2,746,043 Deferred unrealized foreign exchange loss 19,510 - ------------ ------------ $ 3,204,452 $ 2,931,143 ------------ ------------ Liabilities and Shareholders' Equity Current liabilities $ 198,143 $ 203,650 Long-term debt 1,323,007 1,136,276 Deferred credits 433,447 386,903 Shareholders' equity 1,249,855 1,204,314 ------------ ------------ $ 3,204,452 $ 2,931,143 ------------ ------------ COMMON SHARE DATA (millions of shares) Weighted average 99.2 98.0 Outstanding Basic 99.6 98.8 Fully diluted 110.1 107.0 >> The recent improvement in oil price netbacks experienced by Canadian Natural in the third quarter of 1998 due to the narrowing of price differentials and reduced costs of condensate are expected to remain as the industry continues to reduce the amount of heavy oil drilling. Canadian Natural continues to achieve high per unit cash flow through its focused approach to cost control. Through strategic property acquisitions closing in the fourth quarter of 1998 Canadian Natural will add to its extensive base of assets, its production levels and its inventory of future opportunities.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:27:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / Place Resources Announces a $6 Million Bought Deal Financing CALGARY, Nov. 12 /CNW/ - Place Resources Corporation (''PLG'' - TSE) is pleased to announce that it has entered into a bought deal financing with a syndicate of underwriters. Place intends to issue 2,000,000 special warrants at a price of $3.00 per special warrant for aggregate gross proceeds of $6,000,000. Up to an additional 300,000 special warrants may be issued subject to an underwriters' option. Each special warrant will entitle the holder, without additional payment, to acquire one Place common share from treasury. The financing is subject to final regulatory approval, and the closing is expected to take place on or before December 3, 1998. Proceeds from the issue will be used to facilitate Place's ongoing exploration and development plans at Minehead, Alberta, and for general corporate purposes.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:33:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / Fox Energy Corporation Private Placement CALGARY, Nov. 12 /CNW/ - Fox Energy Corporation announced that it has raised $300,000 through a fully subscribed private placement of 1,500,000 common shares at $0.20 per share with flow through features and 1,500,000 warrants. The warrants are exercisable on or before December 31, 1999 on the basis of two warrants plus $0.40 to acquire one common share. The Company will use the proceeds of the financing to fund a portion of its 54% share of an operated 12 well drilling program on the Medicine Hat Hilda natural gas project in southeast Alberta. The drilling program will commence during the next week with the wells being placed on-stream by December 1998. Fox's production mix is expected to be approximately 75% natural gas and 25% light oil by the end of the year. Fox continues to focus on optimizing its natural gas properties to capitalize on the strong commodity selling prices.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:35:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Upton Resources Testing New Wells CALGARY, Nov. 12 /CNW/ - (URC-TSE) Upton Resources Inc. today announced results on two new wells. Upton has cased and is currently completing for production, a new vertical exploration discovery. This 100% well flowed clean light oil to surface in 4 minutes on a drill stem test and appears to hold significant reserve and production potential. The second well a horizontal at Midale (100%) is now on production, flowing on a restricted choke. The Company expects to release initial production results from both wells next week (November 18th) with 3rd quarter results. The common shares of Upton are listed on the Toronto Stock Exchange under the symbol ''URC''.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:37:00 PM
From: Kerm Yerman	Respond to of 15196

DIVIDEND ANNOUNCEMENT / Suncor Energy Inc. CALGARY, Nov. 12 /CNW/ - Suncor Energy Inc. has declared a cash dividend of 17 cents per share on its common shares, payable December 24, 1998, to shareholders of record at the date of close of business on December 15, 1998.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:38:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

RESERVE REPORT / Petrolex Energy Corporation announces 58% increase in proven reserves VANCOUVER, Nov. 12 /CNW/ - Petrolex Energy Corporation Trading Symbol: PXV - TV Petrolex Energy Corporation (the ''Company'') is pleased to announce that independent Reservoir Engineers, Ryder Scott Company of Houston have recently completed a revised evaluation of the recoverable reserves in the Company's 100% owned Rubiales Oilfield. This evaluation takes into account the long term production profiles of the wells that were put on production at Rubiales prior to the field being shut-in as a consequence of the kidnapping of 2 field staff in September last year by local guerillas. The estimated proven recoverable (1P) reserves in the Rubiales Oilfield has been increased from approximately 134 million barrels of oil to approximately 211 million barrels of oil. This represents an increase of some 58% in the proven reserves as stated in the October 1996 Ryder Scott Report prepared in conjunction with the listing of the Company on the Toronto Stock Exchange in March 1997.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:41:00 PM
From: Kerm Yerman	Respond to of 15196

MERGERS-ACQUISITIONS / Blue Range Resource Corporation Acknowledges Hostile Take Over Announcement CALGARY, Nov. 12 /CNW/ - Blue Range Resource Corporation announced that it is aware that Big Bear Exploration Ltd. has issued a press release announcing the intention of Big Bear to make an offer to acquire all of the outstanding shares of Blue Range on the basis of 11 shares of Big Bear for each share of Blue Range. A meeting of the Blue Range Board of Directors has been called to consider the hostile offer. Blue Range is a natural gas exploration, development and production company based in Calgary, Alberta. The Company concentrates its activities on liquid-rich natural gas prospects in Central Alberta, Northwest Alberta and Northeast British Columbia. Blue Range's common shares are listed for trading on The Toronto Stock Exchange and The Alberta Stock Exchange under the symbol BBR.A.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:43:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Pengrowth Corporation/Pengrowth Energy Trust Announces Third Quarter 1998 Results and November Cash Distribution CALGARY, Nov. 12 /CNW/ - Pengrowth Corporation (''Pengrowth''), administrator of Pengrowth Energy Trust (''EnergyTrust''), announced today that the gross revenue for the three months ended September 30, 1998 increased to $42,187,605 from $21,057,047 for the same period in 1997. Distributable income for the three months ended September 30, 1998 was $18,026,904 or $0.3807 per unit compared to 1997 third quarter distributable income of $10,068,899 or $0.4333 per trust unit. This decline in distributable income per unit resulted from lower crude oil and natural gas liquids prices. The average price received per boe was $17.94 in 1998 compared to $20.71 per boe for the third quarter of 1997. For Three Months Ended September 30, 1998 September 30, 1997 ---------------------- ------------------ ------------------ Oil and Gas Revenue - gross $42,187,605 $21,057,047 Distributable Income $18,026,904 $10,068,899 Distributable Income/Unit $0.3807 $0.4333 Total Production boepd 25,563 10,965 For Nine Months Ended September 30, 1998 September 30, 1997 ---------------------- ------------------ ------------------ Oil and Gas Revenue - gross $130,230,121 $67,251,974 Distributable Income $56,276,808 $36,728,468 Distributable Income/Unit $1.1890 $1.5887 Total Production boepd 26,027 11,228 As of September 30, 1998, Pengrowth had a balance of $5,699,416 or $0.1204 per trust unit in distributable income, not yet paid or declared payable, available for future distribution. Production averaged 25,563 boe per day for the third quarter 1998 compared to 10,965 boe per day for the comparable period in 1997, an increase of 133%, primarily attributable to the Judy Creek/Swan Hills acquisition of October 1997. The cash distribution payable November 15, 1998 will be the regular monthly cash distribution of $0.11 per trust unit. The ex-distribution date for this payment was October 29, 1998. Pengrowth continues to actively pursue opportunities to acquire producing crude oil and natural gas properties in order to achieve EnergyTrust's objectives of increasing unitholder cash distributions and value.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:48:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Startech Energy Inc. Third Quarter Report CALGARY, Nov. 12 /CNW/ - STARTECH ENERGY INC. (''Startech'' or the ''Company''), announced today the Company's financial and operating results for the third quarter of 1998 wherein Startech again posted record quarterly production and cash flow. ($ thousands except per share amounts) 9 Months to September 30, 1998 Year Ago % Increase Revenue $ 35,550 $ 29,078 22 Cash flow $ 17,021 $ 14,695 16 Cash flow per share fully diluted $ 0.75 $ 1.05 - Earnings (loss) $ (1,456) $ 923 - Earnings (loss) per share fully diluted $ (0.07) $ 0.07 - Weighted average shares fully diluted 23,345 14,348 63 ($ thousands except per share amounts) 3 Months to September 30, 1998 Year Ago % Increase Revenue $ 12,716 $ 10,405 22 Cash flow $ 6,364 $ 5,003 27 Cash flow per share fully diluted $ 0.26 $ 0.32 - Earnings (loss) $ 84 $ 157 - Earnings (loss) per share fully diluted - $ 0.01 - Weighted average shares fully diluted 25,747 16,401 57 OPERATIONS Startech achieved record quarterly production of 8,886 BOED (82 percent light/medium oil; 18 percent natural gas) in the third quarter of 1998 as a result of excellent drilling results and successful optimization work. This represents 32 percent growth in daily production over the third quarter of 1997 where Startech averaged 6,718 BOED. The third quarter of 1998 marks the tenth consecutive financial quarter where Startech has achieved record production. With current production already 10 percent higher than third quarter levels, Startech will meet its projected 1998 production exit rate of 10,200 BOED for a sixth year in a row. Third quarter operations were highlighted by successful drilling for light oil at Lougheed, Alida and Browning in southeast Saskatchewan, and for natural gas at Retlaw in southeast Alberta. At Lougheed, Startech continues to focus capital towards drilling development wells into unswept areas of this long life, light oil pool. Startech's second horizontal well at Lougheed continues to produce at 400 bopd with a very low watercut. The waterflood expansion undertaken in the second quarter will be expanded in early 1999 due to the highly successful results achieved thus far. Production at Lougheed is now more than 2,000 bopd net to Startech. Startech expects to achieve production rates of up to 3,500 bopd net in 1999 through the drilling of horizontal and vertical development wells. EXPLORATION During the third quarter of 1998, Startech drilled 15 wells of which 13 were cased for production and 2 were dry and abandoned. This represents an 87 percent success rate for the Company's 1998 third quarter drilling program. In the fourth quarter of 1998, Startech plans to drill 7 wells. These wells include 3 horizontal locations at Alida and Lougheed, and 4 vertical locations at the new Bow Island East crude oil discovery, where Startech holds an operated 60 percent working interest. Startech's 1999 preliminary drilling program calls for the drilling of 70 wells (50 net) in the present low crude oil price environment. As a result of Startech's high quality, long life reserve and production base, and its solid development drilling inventory, in 1999 Startech will generate growth in daily production of more than 25 percent over 1998 - spending internal cash flow only. The Whiskey Creek gas project continues to move forward with drilling planned for 1999. Startech has applied for a license to drill the well and has requested that the Alberta Energy and Utilities Board schedule a hearing regarding the licensing of the well. The AEUB has scheduled a hearing date in January, 1999. At Whiskey Creek, Startech is targeting a high quality Rundle gas prospect (100 Bcf) that is a step out to an existing well that production tested significant quantities of natural gas. Startech's interest is 60 percent and Startech is the operator. FINANCIAL REVIEW In the third quarter of 1998, Startech generated record cash flow of $6.4MM which is 27 percent higher than the third quarter of 1997. As a result of the Company's consistent growth in quarterly production, Startech has demonstrated successive improvement in cash flow during the first 3 quarters of 1998 - despite adverse pricing for crude oil. Third quarter 1998 cash flow was more than 10 percent higher than the $5.8 million of cash flow reported in the second quarter of this year - despite a 5 percent drop in the quarterly average benchmark West Texas Intermediate crude oil price. Funds generated from operations per fully diluted share were $0.26 ($0.27 basic) in the third quarter of 1998, compared to $0.32 ($0.34 basic) in the third quarter of 1997. Third quarter average prices were $18.20 per barrel of crude oil and $2.01 per mcf of natural gas, net of hedging activities, compared to $21.58 per barrel and $1.70 per mcf respectively in the third quarter of 1997. Operating expenses for the third quarter of 1998 were $5.14 per BOE compared to $5.61 per BOE for the third quarter of 1997. Royalties, before ARTC, averaged 18 percent for the current quarter compared to 22 percent a year ago. G&A expense increased by $178,000 compared to the third quarter of 1997. On a BOE basis, G&A expenses decreased slightly to $0.91 from $0.92 compared to the same period a year ago. Interest expense for the third quarter of 1998 increased by $179,000 over the third quarter of 1997 due to higher levels of debt compared to a year ago. OUTLOOK Early in 1998 Startech's management took proactive steps to ensure that the Company would both survive and grow in the present low crude oil price environment. These steps include: - cutting back capital expenditures early in the first quarter of 1998 to match actual cash flow; - drilling only our highest netback/lowest risk prospects; - raising equity to position Startech's balance sheet for growth opportunities; - proactively managing Startech's debt to cash flow ratio; - focusing acquisitions to key top-ups in core areas, and divesting of minor, non-core assets; - continuing our successful hedging program; and - maintaining our focus on reducing operating costs. As a result of the steps that were taken by management, Startech is positioned to resume solid per share growth in production, cash flow and net asset value in 1999 and beyond, even in a low crude oil price environment. This growth will be based upon Startech's high quality, long life reserve and production base, solid balance sheet and inventory of development drilling locations in core areas. Consequently, utilizing a capital budget funded entirely out of internal cash flow, in 1999 Startech projects daily production of 11,000 BOED (80% light oil/20% natural gas), cash flow of $33 million and cash flow per share of $1.44 basic and $1.33 fully diluted - at US $15.75 WTI per barrel and C$2.25 per mcf AECO pricing. This represents internally generated growth of 25 percent in production and 33 percent in cash flow per fully diluted share over 1997 -- at low oil prices.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:50:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / AKITA Drilling Ltd. Quarterly Dividend CALGARY, Nov. 12 /CNW/ - AKITA Drilling Ltd.'s Board of Directors approved the payment of an increased quarterly dividend to shareholders. AKITA Drilling Ltd. declared an ordinary cash dividend of seven cents ($0.07) per share on the outstanding Class A Non-Voting and Class B Common shares of the Corporation with a Record Date as at the close of business on December 17, 1998 and a payment date of January 4, 1999. This represents an increase of one cent ($0.01) over its previous quarterly dividend. AKITA is an Alberta corporation engaged in the contract drilling business and is listed on the Toronto Stock Exchange under the symbol AKT.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:57:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Emerald Bay Energy Inc. Acquisition EMERALD BAY ENERGY ANNOUNCES ACQUISITION OF LATERAL DRAINHOLE DRILLING APPARATUS (LDD) CALGARY, ALBERTA-- Emerald Bay Energy Inc. (ASE: EBY) is pleased to announce that negotiations are complete and that it has successfully acquired 100 percent of the exclusive North American rights, title and interests of a patented Lateral Drainhole Drilling Apparatus (LDD). Management of Emerald Bay has been involved in the development of the LDD over the past several years. Under the terms of the agreement Emerald Bay will not issue any shares, and as the LDD tool reaches various stages of development, Emerald Bay will release funds in incremental amounts to a maximum of $335,000. The corporation will also pay a gross override royalty of 9 percent of the gross revenues generated by the commercialization of the LDD apparatus tool. Engineers have spent 10 years researching and developing the LDD. The corporation believes this new technology and procedure for the drilling of lateral drain holes in previously completed or new wells, either oil or gas, that now have low or negligible production has the potential to increase production 5 to 10 times their last daily production. The corporation will utilize a drill string of tubing with the lower end being flexible for 10 to 100 feet or more. The apparatus will enable the drill bit and flexible string to turn 90 degrees from the vertical; all within a 4 inch or larger casing (I.D.) and bore a hole through or below the casing (open hole) and continue with the drain hole out into the formation. The curve at the bottom of the hole and lateral drain hole can be economically drilled and produced with tubular goods from the top drive down to contact with the flexible coil, or alternately can be driven by a down hole electrical motor. The equipment can be rotated all within one zone to provide 4 or more holes, in a radial pattern and can also be designed to provide a drain hole on an updip of 5 to 10 degrees. This will also facilitate better gravity drainage to wellbores that have little water drive, gas drive, or low bottom hole pressure to bring the oil - condensate to the wellbore. The existing technology used for horizontal drilling uses whipstock techniques in combination with expensive downhole mud motors and very heavy top drive equipment. The LDD technology reduces the costs of horizontal drilling substantially by turning much sharper curves, all within the wellbore. This new procedure offers promise as a way to increase production by changing the geometry of the well primarily from vertical to horizontal. We believe that existing or new cased wellbores can be completed for approximately $10,000 to $20,000, reducing costs substantially compared with costs associated with conventional methods used today. We propose to increase radial drainage toward a vertical wellbore with linear drainage along the length of the lateral to increase the production of oil and gas from hydrocarbon bearing formations. These small lateral drain holes can initially be anywhere from 10 to 100 feet in length and possibly longer, to create a wagon wheel pattern of horizontal perforations. The corporation is currently in talks with prospective joint venture partners to participate in the final development, construction and commercialization of the LDD. Costs associated with the LDD apparatus tool are being finalized and tenders are currently being sought. An update will be made available once an agreement has been reached.

To: Kerm Yerman who wrote (13463)	11/12/1998 9:58:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Destiny Resource Services Acquisition DESTINY RESOURCE COMPLETES ACQUISITION OF OILFIELD SERVICE COMPANIES AND ANNOUNCES APPROVAL OF SHAREHOLDERS RIGHTS PLAN CALGARY, ALBERTA-- DESTINY RESOURCE SERVICES CORP. (TSE/ASE "DSC"). announced today it has closed the acquisition of the McConnell Group of Companies previously announced on November 6, 1998. The acquisition involved the purchase of all the issued and outstanding shares of the McConnell Group of Companies, a 25 year old privately held integrated group of oilfield service companies based in Brooks, Alberta. Destiny paid $8.7 million for the acquisition which consisted of a $5.0 million cash payment and the issuance of 1,175,000 common shares of Destiny at $3.15 per share. Destiny has also assumed debt totaling approximately $3.5 million. At the same time, Destiny announced the closure of the acquisition by McConnell of all the issued and outstanding shares of JC Electric Ltd., an electrical contracting company, also located in Brooks, Alberta and previously announced on November 6, 1998. The purchase price for JC Electric of $2.4 million, was paid by Destiny and consisted of $1.8 million in cash payable over two years and the issuance of 200,000 common shares of Destiny at $3.00 per share. The McConnell Group and JC Electric generated approximately $30 million (unaudited) in revenue during the past 12 months of operations. The effective date of both acquisitions will be September 1, 1998. Destiny further announced today, the Shareholder Rights Protection Plan, previously announced on October 8th, 1998, received Shareholder approval at the Annual General Meeting of shareholders, held on November 10th, 1998. Destiny Resource Services Corp. is a Calgary based service company providing integrated services to the oil and gas industry in Canada, the United States, Central and South America, the Middle East, Africa and Southeast Asia.

To: Kerm Yerman who wrote (13463)	11/13/1998 3:54:00 AM
From: Kerm Yerman	Respond to of 15196

CANADIAN EXCHANGES / Closing Market Reports ---------------------------------------------------------------------- Toronto Stock Exchange - Daily Market Summary for Thursday, November 12, 1998 04:33 PM TORONTO, Nov. 12 /CNW/ - TSE 300 COMPOSITE INDEX IS DOWN PERCENTAGE CHANGE 0.37% POINTS CHANGE 23.42 TSE 300 INDEX LEVEL 6255.86 TRADING VOLUME VALUE TRANSACTIONS 106 674 910 $1,850,129,335.00 45 216 ADVANCING ISSUES DECLINING ISSUES UNCHANGED ISSUES 510 478 277 TSE 35 INDEX IS DOWN PERCENTAGE CHANGE 1.04% POINTS CHANGE 3.56 TSE 35 INDEX LEVEL 338.29 TSE 100 INDEX IS DOWN PERCENTAGE CHANGE 0.53% TOTAL POINTS CHANGE 2.03 TSE 100 INDEX LEVEL 381.22 5 OF THE SUB-GROUP INDICES ARE HIGHER GOLD AND SILVER IS UP 04.06% OR 274.27 TO 7029.79 ACTIVE STOCKS TIPS 35 IS DOWN $0.40 TO $33.95 PROVIGO IS UP $0.15 TO $15.20 LARGE PRICE CHANGES JETFORM IS DOWN $3.65 TO $17.30 THOMSON CORP IS DOWN $3.15 TO $31.00 ---------------------------------------------------------------------- Montreal Stock Exchange - Daily stock market report - 4 p.m. MONTREAL, 12 nov. /CNW/ - General activity on The Montreal Exchange at 4 p.m. (including the early morning session): Trading SLOW Volume traded: 15.7 million shares Value traded: 145.5 million dollars Indices: XXM close -39.06 3154.54 high 3221.60 low 3153.02 Montreal Exchange most active stocks: CAE INC -1.10 8.20 MITEL CORP. +0.20 11.20 CALL-NET -0.80 9.70 MPACT IMMEDIA +0.15 10.80 INMET MINING -0.05 3.50 Tree-month Canadian Banker's Acceptance (BAX): Volume: 15 515 Open interest: 218 378 Five-year Government of Canada Bond (CGF): Volume: 0 Open interest: 2 640 Ten-year Government of Canada Bond (CGB): Volume: 6 033 Open interest: 47 433 ---------------------------------------------------------------------- Alberta Stock Exchange - Closing Market Report for Thursday, November 12, 1998 CALGARY, Nov. 12 /CNW/ - ALBERTA STOCK EXCHANGE Daily Trading Summary for: 11/12/1998 Time: 15:25:57 Shares Dollar Issues Traded Value Traded Advances Declines Unchanged 8,617,697 3,540,142.00 390 148 144 98 Net Top Five Dollar Value Volume Close Change Trades 237,473.00 MONTELLO RESOURCES 579,300 .380 .045- 103 163,800.00 ALTAQUEST ENERGY COPP 126,000 1.300 .050- 4 142,830.00 NANECO MINERALS LTD 308,000 .470 .030 69 107,917.00 MC2 LEARNING SYSTEMS 35,400 3.300 .200 20 105,474.00 ONTEX RESOURCES LTD 116,350 .880 .100- 47 Net Top Five Volume Value Close Change Trades 579,300 MONTELLO RESOURCES 237,473 .380 .045- 103 308,000 NANECO MINERALS LTD 142,830 .470 .030 69 273,000 ICE DRILLING ENT 51,125 .180 .020- 40 215,000 ROYALEDGE RESOURCES 6,600 .030 .010- 6 214,000 MARUM RESOURCES INC 19,310 .095 .005 8 Alberta Stock Exchange Combined Value Index: 1,789.09 Change: 5.39 Total Number of Trades: 1,736 (x)J-JCP Among the Most Active: Montello Resources Ltd. MEO-ASE Nov.12/98- Montello Resources and Redwood Resources have received a report regarding the update of the work in progress on the Legend property in Alberta from Kennecott Canada Exploration. Original Listing: BarCode Holdings Limited- A Junior Capital Pool Company BHL-ASE Nov. 12/98- BarCode Holdings Limited announced that the common shares of BarCode Holdings Limited will be posted for trading at the opening of business today. BarCode Holdings Limited (the ''Corporation'') is pleased to announce that it has executed a letter of intent with respect to its proposed Major Transaction. The Corporation is a junior capital pool company which closed its initial public offering on November 2, 1998, at which time the Corporation issued 3,000,000 Common Shares to the public at a price of $0.10 per share. The proposed Major Transaction of the Corporation will be the acquisition of all of the securities of BarCode Express Inc. (''BEI''). The Letter of Intent regarding the acquisition of BEI by the Corporation was executed effective November 4, 1998. BEI is a private company incorporated under the Business Corporations Act (Ontario) in 1991 with its headquarters in Mississauga, Ontario. BEI is involved in the barcode distribution and materials supply business, an industry in which it has been active since it was founded. Subject to approval of the ASE, the Corporation will be circulating an Information Circular with detailed disclosure on the proposed acquisition of BEI to the public shareholders of the Corporation in an Information Circular for a Special Meeting at which the public shareholders will have the opportunity to vote on the acquisition. Completion of both the acquisition of BEI as the proposed Major Transaction of the Corporation and the accompanying private placement are subject to the approval of The Alberta Stock Exchange. ---------------------------------------------------------------------- Vancouver Stock Exchange Closing Market Report for November 12, 1998 VANCOUVER, Nov. 12 /CNW/ - Trading was moderate on a volume of 18.9 million shares worth 9.5 million dollars, with 102 advances, 122 declines and 332 issues unchanged. The VSE Composite Indicator closed down 2.15 at 404.81 The VSE Mining Indicator closed down 2.43 at 300.77 Most Active Issues by Volume Volume Name Symbol Close Change 702,600 Adda Resources Ltd. ADA 0.23 0.00 645,000 Everest Mines and Mnrls Ltd. EVR 0.14 0.00 588,770 Argentina Gold Corp. ARP 2.11 -0.15 573,400 El Misti Gold Limited EMG 0.18 -0.04 515,000 East West Resource Corporation EWR 0.27 0.07 ----------------------------------------------------------------------

To: Kerm Yerman who wrote (13463)	11/13/1998 4:37:00 AM
From: Kerm Yerman	Read Replies (5) \| Respond to of 15196

EYE ON THE MARKETS / Part 1 Toronto Stocks Close Mixed Reuters TORONTO, Nov 12 - Toronto's stock market gave up early gains to end mixed on Thursday as a rising tide of negativity swamped substantial strength in the key gold mining and oil groups. Investors were nervous ahead of next week's meeting of U.S. central bank decision-makers, who will chose whether or not to chop short-term interest rates to shift the economy into a higher gear. Also, growing tension between the U.S. and Iraq also did not help markets. The Toronto Stock Exchange's benchmark 300 Composite Index closed 23.42 points or 0.4 percent lower at 6255.86 points after making moderate gains earlier in the session. But advancing issues outnumbered declines 510 to 478, creating a mixed result. Another 277 closed flat. The index also bucked Wednesday's gains to return to its downtrend set earlier this week. By comparison the Dow Jones Industrial Average on Wall Street finished a few notches higher, rising 5.92 points to 8829.74 points. In Canada, "we've got a real mixed bag," said Rick Hutcheon, chief investment officer at CentrePost Mutual Funds. Despite upticks in the gold and oil sectors, "the broader market is just not doing much of anything." Investors were concerned oil prices would rise along with the friction in the Gulf, creating inflation. To hedge against potential inflation, they turned to the traditional safe haven of gold. The U.S. has been building its military might in the Gulf to forced Iraq into moderating its stance against sanctions and international arms inspectors. More worrisome in general was the debate on whether the U.S. Federal Open Market Committee will drop short-term interest rates at its November 17 meeting. "They're looking at the Fed week next and looking how that's going to be," Hutcheon said. Wall Street is now split on the outcome after earlier predicting a rate cut. "There's a lot of uncertainty," Hutcheon concluded. "We have to wait for the clouds to part a little bit." In Toronto, nine of the 14 sub-groups weakened, led by media, conglomerates and the heavy duty banks. The financial services sector, which encompasses more than one fifth of the key index, fell more than 1 percent. A rollicking 4.1 percent rally in gold and precious minerals. Oil companies also gained -- the oil and gas group climbed 1.04 per cent -- amid speculation that a military strike against Iraq would mop up a glut of crude currently keeping the price low on international markets. But the fact is that oil prices are low not because of excess supply but dwindling demand, said Craig Langpap, an analyst with Peters and Co. in Calgary. The price of West Texas Intermediate crude, which finished 30 cents higher Thursday, might have done better if not for a recent decision by the International Energy Agency to reduce its demand forecasts. "That's weighing more heavily on the oil price than any thoughts that trouble in the Middle East may cause it to rise," Langpap said. Petro-Canada gained $1.10 to $20.60, while Suncor Energy slipped 40 cents to $48.60. Trading totaled 107 million shares worth C$1.9 billion. Among active issues, Quebec supermarket firm and takeover target Provigo Inc. rose C$0.15 to C$15.20 after a large shareholder, Quebec's Caisse de depot et placement, said it was in talks with buyers other than possible acquisitor grocer Loblaw Cos Ltd. JetForm Corp. easily topped losing issues, tumbling C$3.65 or 17.4 percent to C$17.30 after warning its second-quarter earnings would be significantly below the analysts' consensus. Brokerage Goldman Sachs then cut the company to a market perform rating from market outperform. Clearnet shares dipped C$0.45 to close at C$13.25 and declined 3/8 to 8-5/8 on Nasdaq. The company, lost C$138.1 million, or C$2.55 per share, in the third quarter of 1998 versus a loss of C$55.2 million, or C$1.33 a share in the year-ago period. Sales jumped to C$59.4 million from C$22.6 million in the third-quarter of 1997. the company is a player in the hot new personal communication services market, posted higher net losses in the third quarter but still managed to please analysts. Strength in oil, gold stocks offset softer stock market Canadian Press TORONTO Speculation that Iraq may again feel the military might of the United States helped fuel a massive rally Thursday among oil and gold producers on North American stock markets. But the gains in both solid and black gold weren't enough to prevent the TSE 300 composite index from slipping into the red, where it ended the day at 6,255.86, down 23.42. It was a similar story in New York, where the Dow Jones industrial average, buoyed by surging oil producers, closed just 5.92 points higher at 8,829.74 as profit-takers continued to feed off the market's recent muscle. In Toronto, gold stocks led the rally as the TSE's gold and silver sub-group surged 4.06 per cent atop the spot price of gold, which soared $3.80 US to $296.90 on the New York Mercantile Exchange. Barrick Gold Corp. gained $1.35 to $33.75; Placer Dome Inc. was $1.30 higher at $25.80. Franco-Nevada Mining gained $1.15 to $31.40. Analysts were a little perplexed by the strength of oil stocks, however, considering the price of crude was only up about 30 cents US by day's end. "It really hasn't gone up much, to be perfectly honest," said Craig Langpap, an energy analyst with Peters and Co. in Calgary. "I suppose you could say it's Iraq-related, but it's hardly what most of us would consider robust. Where the concerns are is on the demand side." The price of crude itself is climbing despite the weight of a recent decision by the International Energy Agency to reduce its demand forecasts for 1998 and 1999, said Langpap. "That's weighing more heavily on the oil price than any thoughts that trouble in the Middle East may cause it to rise." Investors, however, are increasingly confident that another Gulf conflict -- the result of Iraq's consistent refusal to co-operate with U.N. weapons inspectors -- is going to mop up surplus demand. Petro-Canada gained $1.10 to $20.60, while Suncor Energy slipped 40 cents to $48.60. Gulf Canada Resources Ltd. was 145 cents higher at $5.95. Of the TSE's 14 index groups, five were higher. Suffering most was the communications and media group, where Thomson Corp. plunged $3.15 to $31.00 after reporting earnings Tuesday that didn't measure up to expectations. The conglomerates group was 1.69 per cent lower as Canadian Pacific slipped 90 cents to $32.70. Power Corp. gained 15 cents to $32.70. Meanwhile, the Canadian dollar closed at 64.67 cents US, down 0.11 cent on North American currency markets. Elsewhere in the Canadian market, Newcourt Credit surged on rumours the company could be up for sale, while Northern Telecom Ltd. posted early gains after announcing a new contract. Newcourt surged more than $3 before settling back to close at $55.25, up $1.55 on trading of more than one million shares, after reports the company may look for a buyer after being hit hard by rising borrowing costs in financial markets. Northern Telecom Ltd., which won a $170 million US order for phone equipment and services from Net2000 Communications, rose 55 cents, but later settled back to close at $68.15, up just 15 cents. A report Thursday about Canada's economy said growth will slow to two per cent in 1999, down from about three per cent this year, but a recession is unlikely. The Canadian Imperial Bank of Commerce report said growth in the U.S. will be cut in half in 1999 to just 1.8 per cent, from 3.5 per cent this year. "In the short term, the Canadian economy looks reasonably healthy," CIBC chief economist Josh Mendelsohn said in the report. "However, the effects of recent developments outside Canada have cast some shadows over 1999." The bank says mounting trade deficits due to slow growth of U.S. exports, lingering effects of a credit squeeze on investment and an expected softening in consumer spending are slowing the U.S. economy. The easing of interest rates by the U.S. Federal Reserve Board, the Bank of Canada and other central banks, as well as the determination of G-7 countries to improve financial stability have boosted markets and confidence, Mendelsohn said. ---------------------------------------------------------------------- Sector Information - TSE 300 canoe.ca Chart - TSE 300 canoe.quote.com Oil & Gas Charts - TSE 300 Oil & Gas Composite chart.canada-stockwatch.com Integrated Oil's chart.canada-stockwatch.com Oil & Gas Producers chart.canada-stockwatch.com Oil & Gas Srvices chart.canada-stockwatch.com Most Actives - All Canadian Exchanges canoe.ca ---------------------------------------------------------------------- C$ rallies on Japan economic package TORONTO - The Canadian dollar closed firmer at C$1.5462 ($0.6467) on Thursday, spurred by news that Japan will announce its largest ever economic stimulus package, worth over 20 trillion yen. The surprise announcement -- currency traders expected a much smaller rescue plan -- drove the yen higher against the U.S. dollar, pulling Canada along with it. The Canadian dollar touched key levels in the afternoon as dealers moved to the safe-haven U.S. dollar on fears of conflict in Iraq, but the currency recoiled and then firmed on the news from Japan. Canada Bonds End Flat To Firmer TORONTO, Nov 12 Canadian government bonds ended a post-holiday session flat to firmer on Thursday, with the short end of the yield curve depressed by the relative weakness of the Canadian dollar. The Canadian dollar lacked support, although it made a mini rebound during the day as the U.S. dollar slipped back versus the yen on expectations that Japan will work out a bigger-than-expected stimulus package. "The currency move is still within the ranges of the past several weeks, and nothing has really changed. Until there's a wider trading range, interest rates are going to track what's happening in the U.S.," said Frank Hracs, head of fixed-income research at TD Securities Inc. Mild bond buying was inspired by overnight declines in stock prices overseas and heightened tension between Iraq and the United States, which usually generates a flight-to-quality move into the U.S. dollar and safe government bonds. Canada's benchmark 30-year bond due June 1, 2027 rose C$0.59 to C$135.96, yielding 5.491 percent. The U.S. 30-year bond rose 18/32 to yield 5.250 percent. The spread between the bonds was 26 basis points after 25 points at the previous close here. Before a crucial U.S. monetary policy event next week, the market has to digest a couple of U.S. indicators on Friday -- October retail sales and producer price index. "Both numbers will create some opportunities, some positive or negative risks for the marketplace," Hracs said. "But these numbers are more secondary now, and the inflation number is expected to remain favorable (for bonds)." Trading remained wary before the market hears the decision on U.S. monetary policy by the Federal Open Market Committee (FOMC) meeting next Tuesday, which the Bank of Canada follows closely. Expectations of a cut in the key short-term lending rate tend to encourage buying on the short end. "The Fed is coming back into considerations of easing next week. You see better buying in the short end of the U.S.," said Jeoffrey Hall, managing analyst at Thomson Global Markets in Boston. "Canada would likely ease alongside the Fed, but we're not getting the strength from the short end of the Canada market simply because the impact of the currency is offsetting the positive sentiment of a rate cut." Fixed-income markets were closed in North America on Wednesday for the Remembrance Day holiday in Canada and the Veterans' Day holiday in the United States. The Canada Mortgage and Housing Corporation (CMHC)'s C$500 million 5.0-percent global bond maturing June 2004 was priced at 99.042, 18 basis points above the Government of Canada bond. At the short end, Canada's three-month when-issued T-bill firmed to yield 4.85 percent from 4.87 percent at the previous close. "Things seem to be relatively good even although the currency is weak," said one money trader. "Today is a settlement day in Canada, so there's definite interest to buy bills." "People are speculating whether the Fed is going to go next week. It's really almost too close to call. We are sitting back and waiting until November 17 comes and goes," she said. Sweden's central bank conducted a 50-basis point cut in key rates on Thursday, confirming a trend of credit easing among industrial nations and providing some support to the bills market, the trader said. Financial markets have been swinging between high expectations and subsiding hopes of further easing by the Fed. The latest bet on a higher chance of a rate cut on November 17 was set after Federal Reserve Vice Chairwoman Alice Rivlin warned on Monday that global turmoil will slow the U.S. economy sharply. A week ago bonds came under selling pressure on comments by Federal Reserve Chairman Alan Greenspan, which were taken as a signal that the Fed might not now be in such a hurry to ease credit further. The market is also awaiting the release at 1030 EST/1530 GMT on Monday of the semi-annual monetary policy report by the Bank of Canada, in which the bank sets the tone for its policy for the coming six months. Bank of Canada Governor Gordon Thiessen holds a briefing at 1145 EST/1645 GMT. The bank is expected to present a dimmer outlook for the Canadian economy than it did before, but analysts say it will be careful so as not to give the impression that it might ease credit more aggressively than the Fed. The Canadian dollar and the short end of the yield curve are susceptible to any hint of a narrowing spread between the U.S. and Canadian yields. Higher Canadian yields have extended underlying support to the Canadian currency.