Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

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

To: Herb Duncan who wrote (13523)	11/14/1998 6:38:00 PM
From: Kerm Yerman	Respond to of 15196

CORP NOTICE / Big Bear Exploration Ltd. Mails Offer to Blue Range Shareholders CALGARY, ALBERTA-- Big Bear Exploration Ltd. ("Big Bear") announced today that it has mailed its Offer to the holders of Blue Range Resource Corporation ("Blue Range"), to acquire all of the outstanding common shares of Blue Range, a Calgary-based oil and gas exploration and development company. This Offer will remain open until 7p.m. local time on December 7, 1998. As announced on Thursday November 12, 1998, Big Bear is making an all-share Offer of 11 shares of Big Bear for each Common Share of Blue Range. "Upon successful completion of the Offer, we intend to quickly integrate Blue Range's assets with Big Bear's. This acquisition is consistent with Big Bear's operating strategy of controlling large, concentrated land blocks with substantial working interests. Big Bear is reacting to the dissatisfaction of the current shareholders of Blue Range who continue to see the disintegration of the value of the Blue Range assets," said Jeff Tonken Big Bear's Chairman & Chief Executive Officer. The Offer is conditional on at least 35 percent of Blue Range's outstanding shares being tendered. Big Bear has letter agreement's from five 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. The Offer is subject to conditions customary in these types of transactions, including the absence of any material change in the business, operations, capital, asset base and management compensation arrangements previously publicly disclosed by Blue Range. Griffiths McBurney & Partners and Maison Placements of Canada have been retained as financial advisors to Big Bear for the purposes of this transaction. 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".

To: Herb Duncan who wrote (13523)	11/14/1998 6:42:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Big Bear Exploration Announces Unaudited Third Quarter 1998 Financial And Operating Results CALGARY, ALBERTA-- Big Bear Exploration Ltd. ("Big Bear") announced today the following unaudited financial and operational results for the nine month period ended September 30, 1998. Production and cash flow from operations increased significantly in the first nine months of 1998 as compared to the same period in 1997. The majority of the production increase in 1998 resulted from the Keg River horizontal oil wells drilled in the first quarter of 1998 on the Company's core property located at Rainbow Lake in north-western Alberta. Cash flow resulting from this production increase was significantly impacted by lower oil prices realized in 1998 as compared to those realized in the same period in 1997. However, Big Bear was still able to realize increased cash flow for the first nine months of 1998. /T/ 3 Months, 9 Months Ended Sept. 30 Ended Sept. 30 1998 1997 1998 1997 FINANCIAL (unaudited) (unaudited) ($ 000's except per share amounts) Total revenues, net of royalties 2,940 1,065 9,262 2,641 Cash flow from operations 614 553 2,704 1,330 Basic per common share $0.011 $0.025 $0.069 $0.067 Fully diluted per common share $0.011 $0.024 $0.061 $0.066 Income (loss) for the period (2,012) 75 (19,514) 397 Basic per common share $(0.057) $0.003 $(0.554) $0.020 Long-term debt 19,462 2,083 19,462 2,083 Working capital (deficiency) 8,126 (2,447) 8,126 (2,447) Shareholders' equity 38,424 10,464 38,424 10,464 Capital expenditures, net 1,684 3,222 44,511 13,905 Common shares outstanding (ending) 58,696 22,422 58,696 22,422 Preferred shares outstanding (ending) 13,091 - 13,091 - OPERATIONAL Average daily production (boe) 2,217 732 2,204 580 Oil and NGLs (bbls) 1,770 300 1,728 251 Natural gas (mcf) 4,471 4,316 4,764 3,289 Average sales price (before hedging) Oil and NGLs (per bbl) $18.72 $23.68 $19.25 $24.20 Natural gas (per mcf) $1.81 $1.40 $1.76 $1.44 Wells drilled (gross (net)) 3(2.4) 8(5.4) 16(12.3) 18(12.7) /T/ On a quarter over quarter basis, production and cash flow decreased in the third quarter of 1998 as compared to the second quarter. Production decreased due to the restrictions from the winter-access-only nature of Rainbow Lake which limited Big Bear's ability to service certain wells. Natural declines in oil production and the sale of a minor gas property also contributed to lower production. Cash flow decreased due to the lower production, a slight decrease in commodity prices and also an increase in a foreign exchange hedging loss. Income in the third quarter of 1998 was adversely impacted by a $680,000 write-down of marketable securities. Capital expenditures in the third quarter amounted to $2,299,000 as compared to the second quarter amount of $2,159,000. Also an issue of 20,057,582 common shares was completed near the end of the third quarter of 1998 for total gross proceeds of $11,032,000. Big Bear is continuing to pursue gas exploration opportunities. During the third quarter the company participated in three gross (2.4 net) exploratory gas wells resulting in two (2.0 net) gas wells for an overall success rate of 67 percent. For the remainder of 1998 the company expects to participate in one or two additional exploratory gas wells. Additionally, Big Bear will be participating in one vertical exploratory oil well in Rainbow Lake designed to prove up a new exploration concept. This could potentially lead to several additional new opportunities separate from the numerous horizontal re-entry opportunities available to the company. Given the current depressed oil prices Big Bear has temporarily delayed the majority of its re-entry well activity in Rainbow Lake. Big Bear Exploration Ltd. is a Calgary based oil and gas company listed on The Toronto Stock Exchange under the symbol "BDX". /T/ BIG BEAR EXPLORATION LTD. Consolidated Balance Sheets -------------------------------------------------------------- (thousands of dollars As at As at September 30 December 31 1998 1997 -------------------------------------------------------------- (unaudited) ASSETS Current assets Cash and short term deposits $ 7,603 $ 1,796 Accounts receivable 3,132 5,407 Marketable securities 2,441 - Deposits - 2,800 -------------------------------------------------------------- 13,176 10,003 Capital assets 50,210 28,757 -------------------------------------------------------------- $ 63,386 $ 38,760 -------------------------------------------------------------- -------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 5,050 $ 10,085 Current portion of long-term debt 5,462 - -------------------------------------------------------------- 10,512 10,085 Long-term debt 14,000 11,830 Provision for future site restoration 450 210 -------------------------------------------------------------- 24,962 22,125 -------------------------------------------------------------- Shareholders' Equity Share capital Preferred 15,714 - Common 42,755 16,929 Deficit (20,045) (294) -------------------------------------------------------------- 38,424 16,635 -------------------------------------------------------------- $ 63,386 $ 38,760 -------------------------------------------------------------- -------------------------------------------------------------- BIG BEAR EXPLORATION LTD. Consolidated Statements of Income and Retained Earnings -------------------------------------------------------------- (thousands of dollars, 3 Months Ended 9 Months Ended except per share September 30 September 30 amounts) 1998 1997 1998 1997 -------------------------------------------------------------- (unaudited)(unaudited)(unaudited)(unaudited) REVENUE Petroleum and natural gas sales $ 3,513 $ 1,217 $ 10,927 $ 2,958 Other income 4 18 44 51 Royalties, net of ARTC (577) (170) (1,709) (368) -------------------------------------------------------------- 2,940 1,065 9,262 2,641 -------------------------------------------------------------- EXPENSES Operating 1,422 411 3,809 983 General and administrative 577 71 1,623 281 Interest 317 30 1,046 47 Depletion and depreciation 1,946 478 5,538 933 Write-down of marketable securities 680 - 680 - Write-down of capital assets - - 16,000 - -------------------------------------------------------------- 4,942 990 28,696 2,244 -------------------------------------------------------------- Income (loss) before taxes (2,002) 75 (19,434) 397 Capital taxes (10) - (80) - -------------------------------------------------------------- Income (loss) for the period (2,012) 75 (19,514) 397 Retained earnings (deficit), beginning of period (17,839) 196 (294) (126) Dividends - convertible preferred shares (194) - (237) - -------------------------------------------------------------- Retained earnings (deficit), end of period $ (20,045) $ 271 $ (20,045) $ 271 -------------------------------------------------------------- -------------------------------------------------------------- Income (loss) per common share $ (0.057) $ 0.003 $ (0.554) $ 0.020 -------------------------------------------------------------- -------------------------------------------------------------- BIG BEAR EXPLORATION LTD. Consolidated Statements of Changes in Financial Position -------------------------------------------------------------- 3 Months Ended 9 Months Ended September 30 September 30 (thousands of dollars)1998 1997 1998 1997 -------------------------------------------------------------- (unaudited)(unaudited)(unaudited)(unaudited) Cash provided by (used in): OPERATING ACTIVITIES Income (loss) for the period $ (2,012) $ 75 $ (19,514) $ 397 Items not affecting working capital Depletion and depreciation 1,946 478 5,538 933 Write-down of marketable securities 680 - 680 - Write-down of capital assets - - 16,000 - -------------------------------------------------------------- Cash flow from operations 614 553 2,704 1,330 Net changes in non-cash working capital 2,856 1,542 40 1,507 -------------------------------------------------------------- 3,470 2,095 2,744 2,837 -------------------------------------------------------------- FINANCING ACTIVITIES Increase (decrease) in long-term debt (1,140) 1,136 7,632 2,083 Issue of common shares and special warrants 10,249 - 27,586 7,576 Issue of convertible preferred shares (36) - 15,714 - Dividends on convertible preferred shares (194) - (237) - -------------------------------------------------------------- 8,879 1,136 50,695 9,659 -------------------------------------------------------------- INVESTING ACTIVITIES Petroleum and natural gas properties, net (1,684) (3,222) (44,511) (7,511) Purchase of marketable securities (3,121) - (3,121) - Purchase of Pamplona Energy Limited - - - (6,394) -------------------------------------------------------------- (4,805) (3,222) (47,632) (13,905) -------------------------------------------------------------- Increase (decrease) in cash 7,544 9 5,807 (1,409) Cash , beginning of period 59 (217) 1,796 1,201 -------------------------------------------------------------- Cash (indebtedness), end of period $ 7,603 $ (208) $ 7,603 $ (208) --------------------------------------------------------------

To: Herb Duncan who wrote (13523)	11/14/1998 6:50:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Total Energy Services Ltd. Third Quarter Report CALGARY, Nov. 13 /CNW/ - The third quarter continued to prove challenging for Total. Sustained low oil prices continued to adversely impact the cash flows of our customers, resulting in low capital expenditures by oil and gas companies. High levels of uncertainty regarding the debt and equity financing capabilities of our customers continued throughout the third quarter, also contributing to decreased activity. Utilization for our drilling rental assets averaged 25% for the third quarter of 1998 as compared to 30% for the second quarter of 1998. As promised in the second quarter report, these persistently low utilization rates have caused us to reduce our operating and overhead structures. By the end of September, drilling rental personnel had been reduced by approximately 15%, improved cost control measures were implemented, a program to dispose of surplus non-core assets was initiated, and a renewed marketing focus was implemented. Fortunately, Bidell Equipment Inc., the gas compression business that Total acquired in July, experienced an active quarter. Bidell generated strong earnings due to prior sales commitments from the first half of 1998 for low horsepower, gas compression packages for Northern Alberta. We have started implementing a plan to prudently build the infrastructure for a near to long term expansion of this business. Financial Results Three months ended Nine months ended September 30 September 30 (Unaudited, $000's except per share amounts) 1998 1997 1998 1997 ------------------------------------------------------------------------ Revenue $ 7,272 $ 232 $ 15,713 $ 233 -------------------------------------------- Net earnings (loss) 150 (20) 709 (39) -------------------------------------------- Basic earnings (loss) per share $ 0.00 $ (0.00) $ 0.05 $ (0.00) Fully diluted earnings (loss) per share $ 0.00 $ (0.00) $ 0.04 $ (0.00) Fully diluted cash flow per share $ 0.06 $ (0.00) $ 0.20 $ (0.00) Fully diluted EBITDA per share $ 0.07 $ (0.00) $ 0.26 $ (0.00) -------------------------------------------- The nine months ended September 30, 1997 only included two months of Total's trailer repair operations while the nine months ended September 30, 1998 include nine months of Total's trailer repair operations, nine months of Total's drilling rentals operations and three months of Total's gas compression operations. Drilling rental operations contributed revenues of $2.2 million and $9.7 million for the three months and nine months ended September 30, 1998, respectively. Gas compression services contributed $4.7 million of revenue for the three months ended September 30, 1998. Trailer repairs contributed revenues of $330 thousand and $1.3 million for the three months and nine months ended September 30, 1998, respectively compared to $232 thousand for the two and one-half months ended September 30, 1997. Acquisitions The acquisition of the shares of Bidell Equipment Inc. was completed for $4.5 million on September 4, 1998, with an effective date of July 1, 1998. Bidell is a Calgary-based supplier of natural gas compression equipment to Canadian-based oil and gas producers and has been in operation since 1988. Bidell's product line consists of ''low to mid-range'' compressor packages ranging from 100 to 1,000 hp. Bidell is the Western Canadian distributor of a line of screw compressors manufactured by the Sullair Corporation of Michigan City, Indiana. The acquisition of the shares of Daval Industries Inc. was cancelled on October 16, 1998. The combination of weak drilling activity and capital required to expand Bidell resulted in Total electing not to incur any additional acquisition related debt. Outlook Despite a strong short and near term outlook for natural gas, both in terms of pricing and volumes, fluctuating crude oil prices continue to adversely impact our industry. Low oil prices continue to create reduced cash flows, which in turn causes delays or cancellations of drilling programs and compression package orders. Uncertainties surrounding the range of crude prices for the balance of 1998 and into 1999 continue to create a negative environment for debt and equity financings. We expect October and November to be weak months for our drilling rental business until the winter drilling programs commence in December. The deferral of many of these drilling programs from the third and fourth quarters may results in a more active first quarter of 1999 than initially expected. We also expect the current soft market conditions in the compression business to extend throughout the fourth quarter with winter-access only factors driving the activity in the first quarter of 1999. Implementing effective cost control measures combined with positioning the businesses to respond to activity level increases are our primary objectives for the balance of 1998. The common shares of Total Energy Services Ltd. trade on The Alberta Stock Exchange under the symbol ''TOT''. The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.