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

To: Kerm Yerman who wrote (13598)	11/18/1998 9:05:00 PM
From: Kerm Yerman	Respond to of 15196

CORP NOTICE / Corlac Oilfield Leasing Ltd Stock Options CORLAC OILFIELD LEASING LTD. - RE: STOCK OPTIONS REDCLIFF, ALBERTA-- CORLAC OILFIELD LEASING LTD. (the "Corporation") (ASE: "CKL") is pleased to announce that it has reserved an undiscounted price of $0.55 per share in connection with the proposed grant of stock options to acquire up to 75,000 common shares (the "Stock Options"). The Stock Options will be granted to an officer of the Corporation. The grant of the Stock Options is subject to regulatory approval and the Corporation is required to file a formal application with The Alberta Stock Exchange within 14 calendar days of this press release.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:08:00 PM
From: Kerm Yerman	Respond to of 15196

Financing / Zargon Oil & Gas Ltd. Private Placement ZARGON OIL & GAS LTD. ANNOUNCES FINANCING CALGARY, ALBERTA-- Zargon Oil & Gas Ltd. announces that it has entered into a financing agreement with a syndicate of underwriters led by Goepel McDermid Inc. in respect of a private placement of 1,800,000 Special Warrants at a price of $2.90 per Special Warrant. Each Special Warrant will be exchangeable for one common Share of Zargon at no additional cost. In addition, Zargon has granted an option to the Underwriters to purchase an additional 200,000 Special Warrants. Closing is expected to occur on or before November 30, 1998, subject to regulatory approval. Proceeds from the issue will be used to fund Zargon's ongoing exploration and development activities, acquisitions, and for general corporate purposes. Zargon Oil & Gas Ltd. is a Canadian company engaged in exploration, development and production of natural gas and crude oil. Zargon's common shares are listed on The Toronto Exchange under the trading symbol "ZAR".

To: Kerm Yerman who wrote (13598)	11/18/1998 9:11:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Vermilion River Farmin Update HAWK OIL INC. - 100% EXPLORATION SUCCESS AT VERMILLION RIVER CALGARY, ALBERTA-- Hawk Oil Inc. is thrilled to announce that it has successfully completed the first phase of its 100% working interest Vermilion farmin by hitting gas on each of its first 5 wells. The results exceeded Hawk's internal expectations and confirmed its technical models in the area. Hawk encountered gas in the Viking, Colony and Wabiskaw Formations. Initial test results indicate productive capabilities range from 750 mcf to 2000 mcf per day per zone. Of the five wells, two will be dually completed (gas will flow from two separate formations concurrently). In this area, Hawk is expecting excellent netbacks exceeding $2.00/mcf this winter as a result of favourable farmin terms, inexpensive operating costs, and high gas prices. Hawk has until January 31, 1999 to elect to drill 4 more earning wells to hold the farmin lands until December 31, 1999 and may elect to drill a further 4 wells to hold the lands into the next millenium. The farmin block comprises 82,000 acres (130 sections) of undeveloped freehold land which includes all gas rights and a further 42,000 acres (65 sections) of undeveloped freehold land which includes partial gas rights. Given the outstanding results to date, the excellent land position and the affordable drilling and operating costs, Hawk is confident this area will continue to provide superb growth to the Company. Elsewhere, Hawk is currently tieing in its 2-32 Cardiff gas well which should be on production in early December, 1998. This well is expected to produce at a stabilized rate of 1MMCF per day net to Hawk. The Company is also currently drilling a high impact gas well (25% working interest) at Bearflat, B.C. with Founders Energy Ltd. Hawk expects to surpass its year-end production rate target of 600 barrels of oil equivalent per day. At year end Hawk's production will be 70% gas and 30% oil. December 31, 1998 annualized year-end cash flow is expected to be in excess of 50 cents per A share. Hawk Oil Inc. is a Calgary based oil and gas exploration and production company.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:14:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Sigmacor Inc. Reports KN Energy Product Trial CALGARY, Nov. 17 /CNW/ - SIGMACOR, INC. (''SIGMACOR'') is pleased to announce it has received confirmation of a purchase order from Northern Gas Company, a subsidiary of KN Energy (Denver, CO.) for 1 GAS MICRO unit for product trials. Sigmacor management has also confirmed that KN Energy has authorized its other offices/subsidiaries to issue purchase orders for GAS MICRO trials units. Based on their annual report (1997), KN Energy (''KN'') is the 66th largest gas distribution utility out of the top 300 in North America. KN has 240,000 customers with operating revenues of US $225 million in 1997. KN and its subsidiaries comprise one of the largest natural gas transmission and distribution companies in North America. Purchase orders have previously been received for 12 GAS MICRO units from Northwest Natural Gas (Portland, OR), 4 GAS MICRO units from B.C. Gas, 3 GAS MICRO units from Canadian Western Natural Gas, 1 GAS MICRO unit Southwest Gas Corporation, Las Vegas, Nevada, USA and 2 GAS MICRO units from Connecticut Natural Gas Corp, Hartford, CT, USA. The GAS MICRO product line consists of four models specifically designed to correct the volume of gas flow through meters at commercial and industrial gas measurement sites. SIGMACOR is a Calgary-based company whose principal business is to develop, manufacture and market microelectronic instruments and software, used for natural gas measurement, instrument testing and calibration. The primary focus of the Corporation is to provide products that meet the needs of the natural gas distribution utilities in the United States, Canada and to a lesser extent, in certain international markets.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:19:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Fracmaster's 1998 third quarter results CAGLARY, Nov. 18 /CNW/ - Fracmaster Ltd. announces its results for the nine months and quarter ended September 30, 1998. Prior to an unusual charge taken in the third quarter of 1998 in the amount of $126.1 million ($2.89 per share), the Company reports earnings for the third quarter of $1.5 million ($0.03 per share) on revenues of $78.1 million. This compares to earnings of $12.9 million ($0.30 per share) on revenues of $117.2 million in the third quarter of 1997. The unusual charge reflects the potential impairment in the value of Fracmaster's Russian related assets resulting from the significant downturn in the Russian oil industry and deterioration in the Russian operating environment. The decrease in third quarter consolidated earnings compared to the prior year is largely attributable to the Company's Russian operations which have been seriously impacted by weak oil prices. The Company's North American operations have also been negatively affected by the downturn in oilfield activity. Consolidated funds from operations for the three months ended September 30, 1998 were $13.2 million ($0.30 per share) compared to $26.1 million ($0.61 per share) in the third quarter of 1997. Prior to the unusual charge, the consolidated net loss for the nine months ended September 30, 1998 was $1.8 million ($0.04 per share) on revenues of $256.3 million. This compares to consolidated earnings of $30.0 million ($0.70 per share) on revenues of $319.6 million in the corresponding nine months of 1997. The Company's weak year-to-date performance is due to the effects of low oil prices on its operations, particularly in Russia. Consolidated funds from operations for the nine months were $26.2 million ($0.60 per share) compared to $62.0 million ($1.45 per share) for the corresponding nine months of 1997. The North American Well Services segment provides well stimulation, cementing, nitrogen, conventional coiled tubing services, and coiled tubing drilling applications to the Canadian and U.S. oil and gas industry, as well as industrial and pipeline services to oil and gas processing and transmission companies. Revenues from this segment reached an all time high during the first nine months of 1998, primarily the result of acquisitions in the U.S. which were undertaken in late 1997 and the first half of 1998. U.S. revenues have increased more than 370% on a year-to-date basis over 1997. For the nine months ended September 30, 1998, the Well Services segment generated external revenues of $142.5 million compared to $125.1 million through the first three quarters of 1997. While North American Well Services revenues increased by some 14% over the comparable nine months of 1997, EBITD and earnings have declined. Segment EBITD was $16.8 million and segment earnings were $2.1 million compared to EBITD of $23.2 million and earnings of $10.6 million in the nine months ended September 30, 1997. As a result of the prolonged weakness in oil prices, activity levels for the North American industry have fallen behind prior year levels since the first quarter of 1998. This in turn has increased price competitiveness within the industry which has negatively impacted operating margins and net earnings. Segment earnings were also lower than 1997 as a result of significantly higher charges for interest, depreciation and goodwill amortization attributable to the acquisitions in the U.S. The outlook for North American Well Services for the remainder of 1998 and into 1999 remains somewhat uncertain in light of continued weakness in oil prices. Given the nature of pumping services, the Company is more sensitive to natural gas well activity than to oil well activity. Year-to-date drilling data indicates the industry's shift towards gas, which positively impacts service lines such as fracturing, acidizing and coiled tubing applications. With the current level of uncertainty in the industry, Fracmaster has reviewed, and will continue to adjust, its cost structure to be in line with industry activity levels. The Russian Joint Enterprise segment comprises the Company's proportionate share of Russian operating results, which to date are carried out primarily through its 50%-owned Russian joint ventures. Prior to the unusual charge of $126.1 million which relates to the Company's operations in Russia, this segment contributed revenues of $97.9 million and produced a loss of $4.7 million in the first nine months of 1998, compared to revenues of $178.9 million and earnings of $19.2 million in the first nine months of 1997. Revenues from the Company's Russian operations were down 45% from the corresponding period of 1997. The decline is attributable to the drop in oil prices, which impact the Company directly through the sale of oil, and indirectly in terms of fee-for-service activity levels. Oil prices received by the Russian ventures were, on average, 35% lower than the first nine months of 1997, and 56% lower than the third quarter of 1997. Year-to-date oil production was 32% lower than in 1997 and fell off considerably in the third quarter of 1998 as a result of an agreement signed during the quarter which saw the Company dispose of its remaining oil entitlement at the largest of its ventures, which previously accounted for more than 50% of the Company's total oil production. This transaction, which produced revenues of $16.9 million and earnings of $12.8 million, is included in the third quarter results for this segment. Fee-for-service activities, whereby the Company is paid in cash or cash equivalent for services performed, have also been negatively impacted by weak oil prices. The ability of the Company's Russian customers to pay for such services has been severely hampered and, as a result, fee-for-service activity levels are down 41% year-to-date compared to 1997. Earnings from this segment have also been negatively affected by rouble devaluation. Foreign exchange losses of $3.7 million were reported in the Russian Joint Enterprise segment during the first nine months of 1998, of which $3.2 million were incurred in the third quarter when the rouble devalued by some 160%. The Company has responded to the downturn in its Russian operations by significantly reducing operating costs and capital spending in the Russian joint ventures. The Russian workforce has been reduced by approximately 75% since the first quarter, and year-to-date operating results include $3.5 million of severance costs booked in the last two quarters. Russia's economy was a casualty of the global financial crisis last August. On August 17, 1998, Russia publicly announced that it would postpone repayment of its debts, allow the rouble to float and impose a moratorium on the repayment of foreign private debt. The Russian crisis has seen the rouble fall and inflation rise. It is in this period of uncertainty and difficulty that the unusual charge was booked in an effort to reflect the potential impairment to Fracmaster's Russian operations. More than 60% of the unusual charge relates to accounts and loans receivable due to Fracmaster and reflects management's concerns with collectibility. The Supply and Service segment comprises the Company's activities relating to the provision of materials, services, equipment and technology to the Russian Joint Enterprises, technical alliance partners and to third parties. Net earnings from the Supply and Service segment for the first nine months of 1998 were $6.1 million on external revenues of $12.5 million, up from earnings of $3.0 million on external revenues of $15.6 million in the first nine months of 1997. Supply and Service results can vary significantly from period to period depending upon the timing of equipment, parts and chemical sales as well as foreign exchange fluctuations. Earnings from this segment include $3.3 million of exchange gains through the first nine months of 1998 relating to currency fluctuations between the Canadian and U.S. dollar. Fracmaster is arranging an increase of $13.2 million to its three year term facility. Accordingly, when drawn down, the amount of the term-debt will increase to $63.2 million from $50 million. Proceeds will be used to reduce Fracmaster's operating line of credit in Canada. Fracmaster Ltd. is an international oil and gas service and production company which is listed on the New York Stock Exchange, the Toronto Stock Exchange and the Montreal Exchange and trades under the symbol ''FMA''. For further information on the Company please visit our web site at fracmaster.com. Nine Months Ended Three Months Ended September 30, September 30, ($ Million) ($ Million) 1998 1997 1998 1997 ---- ---- ---- ---- Revenues 256.3 319.6 78.1 117.2 Earnings before Interest, Income Taxes, Depreciation and Unusual Charges (EBITD) 31.7 77.1 13.7 30.1 Net Income (Loss) - before unusual charges (1.8) 30.0 1.5 12.9 - after unusual charges (127.9) 30.0 124.6 12.9 Net Income (Loss) per Share - before unusual charges $(0.04) $0.70 $0.03 $0.30 - after unusual charges $(2.92) $0.70 $(2.86) $0.30 Funds Flow from Operations 26.2 62.0 13.2 26.1 Funds from Operations per Share $0.60 $1.45 $0.30 $0.61 ------------------------------------------------------------------------

To: Kerm Yerman who wrote (13598)	11/18/1998 9:23:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Upton Resources Third Quarter ending September 30, 1998 CALGARY, Nov. 18 /CNW/ - (URC-TSE) ''Upton announces significant additions to its reserve base and successful exploration test results.'' Highlights In its second quarter report, Upton communicated its strategy to manage the current low oil price environment by focusing on reserve additions, maintaining production at the current level of 4,000 barrels per day and keeping debt at manageable levels. Upton used this strategy with impressive results: - Total reserve additions are 6.6 million barrels. - Total corporate reserves are 13.2 million barrels, up from 7.9 million barrels. - Established reserve life index now exceeds 7.5 years. - Third quarter production averaged 4,031 barrels per day. - Debt net of working capital was reduced to $26.8 million from $29.4 million at the end of the second quarter. - The first Frobisher Beds horizontal at Midale is flowing 200 barrels per day on a 11/64'' choke. - A new exploration discovery, at Browning, is flowing light oil at 150 barrels per day on a 8/64'' choke. Reserve Additions An independent engineering report of the Company's petroleum reserves has recently been completed. Upton increased reserves to 13.2 million barrels, comprised of 9.1 million proven and 4.1 million probable barrels, compared to 7.9 million barrels, comprised of 6.7 million proved and 1.2 million probable at December 31, 1997. Probable reserves, although a higher percentage of total reserves than normal, are typical for pools in the early stage of development such as the Frobisher Beds at Midale. Midale was the most significant contributor to the 6.6 million barrels in additions, accounting for 3.7 million barrels or 57% of the increase. Probable reserves increased from 1.2 to 4.1 millions barrels or 242% with Midale accounting for 2.6 million barrels or 90% of the probable increase. Upton believes that its new horizontal well at Midale is the first step to bringing these reserves into the proven category. Finding and onstream costs for the period are excellent, $2.58 a barrel for total additions, $3.31 a barrel for established additions and $4.61 per proven barrel. Upton's average cash netback in the period of $8.20 per barrel results in a recycle ratio of 2.4 times for establish reserve additions. The reserve replacement ratio is 4.0 times production of 1.3 million barrels for the nine month period. Operations Review During the third quarter Upton was successful in its strategy to maintain production volumes at over 4,000 barrels per day, in a low price environment, with a minimum of drilling expenditure. Upton's nine month activity included 22 wells (16.7 net) including 5 horizontal stepout wells that all added new reserve volumes, 5 vertical development wells and 11 exploration wells, six of which have resulted in new reserves. Upton's total success rate was 17 for 22 or 77%. Three 100% wells were drilled in the third quarter. A successful vertical well at Midale was completed for production at 80 barrels per day and sets up several additional locations. Two exploration tests were dry and abandoned. Upton has also completed additional facility work at Midale including battery and water disposal facilities. Capital expenditures in the quarter were $2.2 million to total $16.9 million for the nine months. Early in the fourth quarter Upton deepened a horizontal well at Midale and now has it on production. This well initially flowed at rates exceeding 1000 barrels a day on completion and is currently flowing 200 barrels a day on a 11/64'' choke pending ongoing reservoir evaluation to establish optimum withdrawal rates. The Company is being cautious with this well due to the significant potential impact on the Company's model to develop this multi-zone reservoir. The well is the first of 25+ horizontal locations identified on the project and is delivering invaluable information regarding future development. Upton intends to monitor and adjust production rates for 2-3 months as part of its reservoir evaluation and has initially placed 11 wells at Midale in its 1999 drilling schedule. Also in the fourth quarter a successful exploration test at Browning tested oil to surface in 4 minutes during a drill stem test from the lower of two pay zones. During completion operations, the upper (untested) zone, flowed at a stabilized rate in excess of 600 barrels per day and has been placed on production flowing on a 8/64'' choke at 150 to 180 barrels a day at 2000 Kpa wellhead pressure. Production will further be reduced to 125 barrels a day to comply with government assigned maximum production rates. Upton is proceeding immediately with a horizontal well offsetting the discovery. This second well will complete Upton's short-term obligations in the area and secure a 100% working interest in the 480 acres immediately adjacent to the discovery. Financial Review Year over year comparisons of production volumes, cash flow and earnings are influenced primarily by lower crude oil prices. Upton's average third quarter wellhead realization ($18.19 per barrel), operating netback ($10.62) and cash netback ($7.24) all improved from the second quarter. Cash flow was $2.7 million in the quarter and $10.5 million for the nine months resulting in basic cash flow per share of $0.16 per share in the quarter and $0.62 for the nine months. An after tax loss of $483,000 and $0.03 per share for the quarter and $1.4 million and $0.08 per share for the nine months was realized. Adoption of Shareholders Rights Plan Upton's Board of Directors has implemented a shareholder rights protection plan (the ''Plan''). The Plan is effective immediately and will be submitted for shareholders' approval and ratification at the next annual meeting of shareholders. The Plan has been adopted in order to provide Upton's board of directors and shareholder with sufficient time to assess and evaluate any take-over bid and, in the event a bid is made, to provide the board of directors with an appropriate period of time to explore, develop and evaluate alternatives which maximize shareholder value. The Plan is also intended to ensure that all of Upton's shareholders are treated equally if a take-over bid is made. The Plan is not intended to deter take-over bids and is not adopted in response to any pending or threatened take-over bid. The Plan provides that a Permitted Bid is a take-over bid made to all shareholders for all of the outstanding shares of Upton, which must be outstanding for at least 45 days. A permitted Bid must also satisfy certain other conditions, including that a minimum of 50% of the outstanding shares (exclusive of shares held by the offeror) must be tendered into the bid after which time the bid must then be extended for a further period of 10 business days. Subject to shareholder ratification at Upton's upcoming shareholders' meeting, the Plan will be operative until Upton's Annual Shareholders' Meeting in 2003. Outlook Fourth quarter drilling to date has included 3(2.20 net) wells and will include 3(2.36) additional wells before year end. Production volumes are expected to remain at 4000 barrels for the quarter with a very good chance of exiting higher, contingent on results from additional wells to be drilled late in the year. Upton is optimistic that the world oil price will improve into 1999 and beyond. For 1999 Upton has based its budget on $15.00 WTI which should result in a wellhead price of $19.00 Cdn. Upton has plans to drill a total of 32 wells in 1999 including 22 development and 10 exploration tests for a total capital expenditure of $20 million dollars. With no production additions from the exploration program, production is expected to climb from 4,000 to 5,000 barrels a day by year end. Upton will enter 1999 with the most exciting development opportunities in the companies' history. Upton's high quality light oil is continuing to generate positive cash flow despite oil prices at near historic lows. The Company is poised to show 25% production growth over current levels in 1999 and its leverage to increased oil prices, which appears to have little downside, will give an extra boost to cash flow and earnings moving forward. HIGHLIGHTS Three Months Nine Months 9 Months Ended Ended % September 30 September 30 Change 1998 1997 1998 1997 Production - barrels per day 4,031 4,887 4,682 4,821 -3 - total barrels 370,824 449,590 1,278,136 1,316,116 -3 Drilling activity - gross wells 3 23 22 32 -31 - net wells 3 13.8 16.7 22.4 -25 Petroleum revenues (000's) $6,744 $10,961 $23,671 $32,452 -27 Cash flow (000's) $2,687 $5,122 $10,487 $16,923 -38 Basic cash flow/share $0.16 $0.31 $0.62 $1.16 -47 Fully diluted cash flow/share $0.15 $0.29 $0.60 $0.99 -39 Net earnings (loss) (000's) $(483) $(451) $(1,414) $1,549 -191 Basic net earnings (loss)/share $(0.03) $(0.03) $(0.08) $0.11 -173 Fully diluted net earnings (loss)/share $(0.03) $(0.03) $(0.08) $0.09 -189 Capital expenditures (000's) $2,235 $10,718 $16,932 $77,725 -78 Average shares outstanding (000's) 17,134 16,597 16,854 14,532 +16 Fully diluted shares outstanding (000's) 17,785 17,656 17,556 17,161 +2 Average oil price per barrel $18.19 $24.38 $18.52 $24.66 -25 Operating costs per barrel $3.54 $4.92 $3.56 $3.80 -6 Operating netback per barrel $10.62 $14.08 $11.20 $15.85 -29 Cash netback per barrel $7.24 $11.39 $8.20 $12.86 -36 Trading Summary High Low Close Volume (000's) 1QTR 1998 $4.25 $3.26 $3.50 1,312 2QTR 1998 $3.60 $2.50 $3.01 781 3QTR 1998 $3.10 $1.38 $1.80 1,145 The common shares of Upton are listed on the Toronto Stock Exchange under the symbol ''URC''. This information has been neither approved nor disapproved by the Toronto Stock Exchange

To: Kerm Yerman who wrote (13598)	11/18/1998 9:26:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Newstar Energy completes Glen Rose ''B'' well in Madisonville field HOUSTON, TX, Nov. 18 /CNW/ - Newstar Energy of Texas, L.L.C. is pleased to report that it is in the process of re-completing the Ruby Magness No. 1 well located in its Madisonville field in East Texas in the Glen Rose ''B'' formation at a depth of approximately 10,400 feet. This operation was prompted by the following: - When the Magness No. 1 well was drilled to the Rodessa formation in 1994, significant shows were encountered in the Glen Rose. - The Company's recently completed proprietary 32 mi(2) 3-D seismic survey indicates a large structural feature extending into the Glen Rose. - There has been an increased level of activity in the immediate area including successful Glen Rose completions of horizontally drilled wells in the immediate area. Final results of the operation have been delayed due to a wire line breaking during initial swabbing operations. During the operations, the Magness No. 1 encountered sweet gas and pressure build up. After retrieving the equipment from the well bore, testing of the Magness No. 1 will resume and, upon completion, final flow test information will be released. The gas from the well will be delivered to Lone Star Gas Pipeline Company through existing gathering lines in the immediate vicinity of the well. The successful completion of this well, coupled with previous shows in the Glen Rose ''B'' elsewhere in the field, would provide Newstar with numerous development opportunities across its existing leasehold. The characteristics of the Glen Rose ''B'' reservoir suggest that the most efficient means of developing these reserves is through the application of horizontal drilling technology. Newstar has several existing well bores in the area which are being considered for re-entry, deepening and the drilling of horizontal drainholes. This approach is a relatively low cost, low risk means for Newstar to bring substantial additional volumes into production over the next 6 to 12 months. The Glen Rose B formation is one of a number of attractive targets delineated by Newstar's 3-D seismic survey on its 12,000 acre Madisonville property. Newstar Energy of Texas, L.L.C. is the gulf coast operating arm of Newstar Energy U.S.A., a wholly owned subsidiary of Newstar Resources, Inc. (NASDAQ: NERIF and TSE: NER). Michigan-based Newstar Resources, Inc. is an oil and gas exploration and production company with operations in Michigan, Ohio and Texas.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:27:00 PM
From: Kerm Yerman	Respond to of 15196

DIVIDEND NOTICE / Shell Canada Declares Dividend CALGARY, Nov. 18 /CNW/ - The Directors of Shell Canada Limited today declared a quarterly dividend of eighteen cents (18 cents). The dividend will be payable December 15, 1998 to shareholders of record November 30, 1998. Dividends payable to shareholders with registered addresses in the United States will be converted into U.S. funds at the rate quoted for U.S. funds by the Bank of Canada at noon on the record date.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:30:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / NAL Oil & Gas Trust Announces Third Quarter Results CALGARY, Nov. 18 /CNW/ - NAL Oil & Gas Trust's third quarter results yielded increases in both distributable income earned and daily production levels. Distributable income was $0.29 per unit, a nine percent increase over the prior quarter, and daily production was 5,606 boe per day, a three percent increase over the prior quarter. NAL's cash on cash yield was 15.7% based on the closing price at the end of the third quarter, compared to 12.7% at the end of the prior quarter. Primarily as a result of significantly lower oil prices, distributable income earned for the nine months ended September 30, 1998 was $0.84 per unit compared to $1.07 for the same period last year and distributable income earned for the quarter was $0.29 per unit compared to $0.33 for the prior year. Of the $0.84 per unit earned, NAL has distributed $0.78 per unit up to October 15, 1998. NAL will be making a special distribution on December 15, 1998 of $0.05 per unit to Unitholders of record on November 30, 1998. NAL's earned income fully supports its level of distributions and no amounts have been distributed from debt. Daily production volume, year to date, has increased 15% over the same period last year. The increase in the average production for 1998 to 5,527 boe per day is mainly due to the Joffre D3 property acquisitions in late 1997 and early 1998, and subsequent development work. Development work at other existing properties continues to add production volumes and offset natural production declines. Oil prices averaged $19.68 for the year to date and averaged $19.57 for the third quarter. In comparison to the same periods last year, average oil prices were 32% lower for the year to date and 24% lower for the quarter. Natural gas prices have averaged $2.17 for the year to date which is the same as 1997. On a quarterly basis, natural gas prices are 18% higher than the previous year. Natural gas prices continue to be strong and are helping to offset the decline in world oil prices. Operating costs for NAL have averaged $4.43 per boe for the year to date compared to $5.51 per boe for the same period in 1997. NAL's operating costs are among the lowest in the conventional oil and gas royalty trust sector. NAL operates seven of its major properties which represent 70% of daily production. NAL's experienced operatorship clearly benefits its bottom line during periods of depressed commodity prices. NAL's decrease in operating costs per boe is the result of continuous improvements and a higher production volume. The mid-year review of oil and natural gas reserves was completed effective July 1, 1998. NAL's established reserves at July 1, 1998 were 22.4 million barrels of oil equivalent, net of 1998 production. This is an increase of 17 percent over the prior year as a result of property acquisitions, development and revisions. NAL has a current reserve life index of 11 years. NAL OIL & GAS TRUST Statements of Royalty Income Calculation and Distributable Income (thousands of dollars, except per unit amounts) (unaudited) Quarter 9 months 9 months Ended ended ended September September September 30, 1998 30, 1998 30, 1997 NAL ENERGY INC. Revenue Oil, natural gas and liquids sales $ 10,406 $ 30,144 $ 32,474 Other 158 473 499 Proceeds on disposal of tangibles - - 401 Freehold and other royalties (272) (800) (937) --------------------------------------------------------------------- 10,292 29,817 32,437 --------------------------------------------------------------------- Expenditures Deductible operating costs 2,937 6,824 7,201 General and administrative 461 1,117 1,344 Management fees 157 505 589 Capital expenditures - - 1,540 Debt service costs 654 1,772 922 Contributions to reclamation reserve 87 263 263 Taxes 82 127 20 --------------------------------------------------------------------- 4,378 10,608 11,879 --------------------------------------------------------------------- Royalty Income $ 5,914 $ 19,209 $ 20,558 --------------------------------------------------------------------- --------------------------------------------------------------------- NAL OIL & GAS TRUST Revenue Royalty at 99% of Royalty Income $ 5,855 $ 19,019 $ 20,352 Crown charges (1,383) (5,687) (5,673) Alberta Royalty Credits 288 497 411 --------------------------------------------------------------------- 4,760 13,829 15,090 Expenditures General and administrative 52 244 269 --------------------------------------------------------------------- Distributable Income Distributable income 4,708 13,585 14,821 Alberta Royalty Credits receivable (288) (497) (411) Alberta Royalty Credits received 5 5 530 Balance from prior period (205) 368 - --------------------------------------------------------------------- Available for distribution to Unitholders 4,220 13,461 14,940 Distributions paid (3,404) (12,645) (14,851) --------------------------------------------------------------------- Balance to be distributed $ 816 $ 816 $ 89 --------------------------------------------------------------------- Per Unit Distributable income $ 0.290 $ 0.838 $ 1.074 --------------------------------------------------------------------- --------------------------------------------------------------------- Distributions paid $ 0.270 $ 0.780 $ 1.080 --------------------------------------------------------------------- --------------------------------------------------------------------- Weighted average units outstanding 16,211,800 16,211,800 13,798,000 NAL OIL & GAS TRUST Combined Statements of Income and Unitholder's Equity (thousands of dollars, except per unit amounts) (unaudited) Quarter 9 months 9 months Ended ended ended September September September 30, 1998 30, 1998 30, 1997 Revenue Oil, natural gas and liquids sales $ 10,406 $ 30,144 $ 32,474 Other 158 473 499 Alberta Royalty Credit 291 502 534 Crown royalties (1,397) (5,744) (5,731) Freehold and other royalties (272) (800) (937) --------------------------------------------------------------------- $ 9,186 $ 24,575 $ 26,839 --------------------------------------------------------------------- Expenses Operating 2,864 6,689 7,221 General and administrative 513 1,360 1,613 Management fees 157 505 590 Interest on long term debt 654 1,772 922 Depletion, depreciation and amortization 5,128 15,721 15,054 Capital taxes 82 127 20 --------------------------------------------------------------------- 9,398 26,174 25,420 --------------------------------------------------------------------- Net income (212) (1,599) 1,419 Unitholders' equity, beginning of period 118,129 129,079 119,135 Dividends paid - (323) - Issue of trust units, net of issue costs 26,467 Adjustment to issue costs - - (14) Distributions paid (3,404) (12,645) (14,851) --------------------------------------------------------------------- Unitholders' equity, end of period 114,513 114,512 132,156 --------------------------------------------------------------------- --------------------------------------------------------------------- Net income per trust unit $ (0.013) $ (0.099) $ 0.103 --------------------------------------------------------------------- --------------------------------------------------------------------- Weighted average units outstanding 16,211,800 16,211,800 13,798,000 --------------------------------------------------------------------- --------------------------------------------------------------------- NAL OIL & GAS TRUST Combined Balance Sheet (thousands of dollars) (unaudited) September 30, December 31, 1998 1997 Assets Current assets Cash and short-term investments $ 268 $ 126 Accounts receivable 6,145 6,779 --------------------------------------------------------------------- 6,413 6,905 --------------------------------------------------------------------- Deferred charges 615 664 Reclamation reserve 906 623 Property, plant and equipment, net 162,805 165,387 --------------------------------------------------------------------- $ 170,739 $ 173,579 --------------------------------------------------------------------- --------------------------------------------------------------------- Liabilities and Unitholder's Equity Current liabilities Accounts payable $ 2,336 $ 3,438 Distributions payable to Unitholders 1,135 1,621 --------------------------------------------------------------------- 3,471 5,059 --------------------------------------------------------------------- Long term debt 50,300 37,900 Future site restoration 2,456 1,541 --------------------------------------------------------------------- 52,756 39,441 --------------------------------------------------------------------- Share capital - - Unitholders' equity 114,512 129,079 --------------------------------------------------------------------- 114,512 129,079 --------------------------------------------------------------------- $ 170,739 $ 173,579 --------------------------------------------------------------------- --------------------------------------------------------------------- Units outstanding 16,211,800 16,211,800 --------------------------------------------------------------------- --------------------------------------------------------------------- NAL OIL & GAS TRUST Combined Statement of Changes in Financial Position (thousands of dollars) (unaudited) 9 months ended 9 months ended September 30, September 30, 1998 1998 Operating Activities Net income $ (1,599) $ 1,419 Items not involving cash: Depletion, depreciation and amortization 15,721 15,054 ---------------------------------------------------------------------- Cash flow from operations 14,122 16,473 Decrease in non-cash working capital (684) (418) ---------------------------------------------------------------------- 13,438 16,055 ---------------------------------------------------------------------- Financing Activities Issue of trust units - 26,453 Distributions to Unitholders (13,132) (17,415) Advances from (repayment of) long term debt 12,400 (10,500) Decrease in non-cash working capital 38 346 Dividends paid (323) - ---------------------------------------------------------------------- (1,017) (1,116) ---------------------------------------------------------------------- Investing Activities Purchase of property, plant and equipment (12,225) (12,880) Reclamation reserve (283) (275) Decrease (increase) in non-cash working capital 229 (1,553) ---------------------------------------------------------------------- (12,279) (14,708) ---------------------------------------------------------------------- Increase in cash and short-term investments 142 231 ---------------------------------------------------------------------- Cash and short-term investments, beginning of period 126 1,672 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Cash and short-term investments, end of period $ 268 $ 1,903 ---------------------------------------------------------------------- ---------------------------------------------------------------------- NAL OIL & GAS TRUST VOLUME AND PRICE ANALYSIS Quarter Quarter 9 months 9 months Ended Ended ended ended September September September September 30, 1998 30, 1997 30, 1998 30, 1997 ------------------------------------------------------------------------- DAILY PRODUCTION Oil (bbl) 3,734 3,038 3,542 2,906 Natural gas (mcf) 16,845 17,126 17,466 16,648 Natural gas liquids (bbl) 188 223 238 231 ------------------------------------------------------------------------- Total - BOE(x) 5,606 4,974 5,527 4,802 ------------------------------------------------------------------------- PRICES Oil ($/bbl) 19.57 25.75 19.68 28.87 Natural gas ($/mcf) 2.27 1.92 2.17 2.17 Natural gas liquids ($/bbl) 10.63 16.98 11.90 20.45 ------------------------------------------------------------------------- (x) Gas converted to barrels of oil equivalent based on 10 mcf = 1 bbl

To: Kerm Yerman who wrote (13598)	11/18/1998 9:32:00 PM
From: Kerm Yerman	Respond to of 15196

JCP - MAJOR TRANSACTION / Newbridge Resources Ltd. CALGARY, Nov. 18 /CNW/ - NEWBRIDGE RESOURCES LTD. (the ''Corporation''), a junior capital pool corporation, wishes to update its shareholders with respect to the Corporation completing a Major Transaction and the resolution of the related party transaction set out in its June 26, 1998 news release. The Corporation has entered into an agreement dated September 28, 1998 with respect to a proposed arm's length Major Transaction. The Corporation has agreed to acquire working interests in oil and gas properties located in Pakowki Lake, Alberta and White Bear, Saskatchewan from Hazelwood Energy Limited (''Hazelwood''), an additional working interest in the Pakowki Lake property from Proprietary Energy Industries Inc. (''Proprietary'') and a 3% gross overriding royalty on the White Bear property, for a total purchase price of $1,718,000. The purchase price is to be satisfied by the Corporation issuing 6,563,500 common shares of the Corporation (the ''Common Shares'') to Hazelwood, 1,545,000 Common Shares to Proprietary and 481,500 Common Shares to the owners of the gross overriding royalty, all at a deemed value of $0.20 per share. Furthermore, the Corporation has received from Mr. Marc Dame, a director and shareholder of the Corporation, a cash payment of $28,000 towards his outstanding debt of $77,868 owed to the Corporation. Mr. Dame has pledged his 500,000 Common Shares at a deemed price of $0.10 per share towards the remainder of the debt and it is anticipated that the transfer of these 500,000 shares upon completion of the proposed Major Transaction will satisfy the remaining $50,000 owing to the Corporation. Completion of the transaction is subject to relevant regulatory and shareholder approval. The acquisition of the oil and gas assets by the Corporation is meant to qualify as a ''Major Transaction'' under Alberta Securities Commission Rule 46-501 and Alberta Stock Exchange Circular No. 7. Shareholders of the Corporation will be presented with the proposed transaction for approval by the ''majority of the minority'', within the meaning of Alberta Securities Commission Rule 46-501 and Alberta Stock Exchange Circular No. 7. The common shares of the Corporation trade through the facilities of The Alberta Stock Exchange under the stock symbol NBR. The trading of the common shares remains halted pending completion of the Corporation's Major Transaction.

To: Kerm Yerman who wrote (13598)	11/18/1998 9:35:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Blue Range Resource Corp Natural Gas Agreement CALGARY, Nov. 18 /CNW/ - Blue Range Resource Corporation announced today that it has entered into a fixed price natural gas agreement on 15 MMcf/d of its northeast British Columbia gas production for the period of April 1, 1999 to October 31, 2003. Under the terms of this agreement the expected netback plant gate price will be $2.57/Mcf. 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.