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

To: Kerm Yerman who wrote (13743)	11/24/1998 3:05:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Pacalta Resources Ltd. Third Quarter Results - Part 2 H I G H L I G H T S ------------------------------------------------------------------------ Three months ended Nine months ended Sept. 30, Sept. 30, 1998 1997 1998 1997 ------------------------------------------------------------------------ F i n a n c i a l (U.S.$) (U.S.$) (U.S.$) (U.S.$) (Thousands of US dollars, except where noted) Oil and natural gas sales, net of inventory adjustment 19,993 16,614 56,507 42,925 EBITDA (1) 9,313 8,528 27,487 18,735 Ecuador netback per barrel of oil (1) 4.78 6.57 5.46 5.87 Cash flow 6,378 3,193 20,196 10,507 Basic per share 0.12 0.06 0.38 0.20 Fully diluted per share 0.12 0.06 0.37 0.20 Net income 925 974 3,096 3,697 Basic per share 0.02 0.02 0.06 0.07 Fully diluted per share 0.02 0.02 0.06 0.07 Capital expenditures 44,292 38,324 105,137 72,891 Total assets 310,017 288,431 310,017 288,431 Long-term debt 120,000 120,000 120,000 120,000 Shareholders' equity 142,750 125,930 142,750 125,930 Average number of common shares outstanding 54,032,553 53,063,903 53,724,680 50,544,849 Number of common shares outstanding at the end of the period 54,045,223 53,272,713 54,045,223 53,272,713 Fully diluted number of common shares at the end of the period 57,268,123 55,755,213 57,268,123 55,755,213 O p e r a t i n g Ecuador crude oil production Barrels 2,038,589 1,192,531 5,278,254 2,849,358 Barrels per day 22,159 12,962 19,334 10,437 Canada crude oil and natural gas production Barrels of oil equivalent - 99,431 - 323,367 Barrels of oil equivalent per day - 1,081 - 1,185 Total Company Barrels of oil equivalent 2,038,589 1,291,962 5,278,254 3,172,725 Barrels of oil equivalent per day 22,159 14,043 19,334 11,622 Average Ecuador crude oil price at Esmeraldas ($/Bbl) 9.56 14.44 10.41 15.46 Number of wells drilled in Ecuador Oil 7 7 17 13 Dry 1 - 1 - Injection - - - 1 ------------------------------------------------------------------------ (1) Oil and natural gas sales net of inventory adjustment less royalties, operating expenses and general and administrative expenses. CONSOLIDATED BALANCE SHEETS (Thousands of U.S. dollars) ------------------------------------------------------------------------ September 30, December 31, 1998 1997 ------------------------------------------------------------------------ (Unaudited) A s s e t s Current assets Cash and short-term investments $ 13,345 $ 104,900 Accounts receivable 14,471 8,132 Inventory 2,405 2,417 ------------ ------------ 30,221 115,449 Other assets 9,199 12,468 Deferred income taxes - 605 Property, plant and equipment, net 270,597 176,158 ------------ ------------ $ 310,017 $ 304,680 ------------ ------------ ------------ ------------ L i a b i l i t i e s a n d S h a r e h o l d e r s' E q u i t y Current liabilities Accounts payable and accrued liabilities $ 38,007 $ 38,515 Current portion of long-term liability 2,249 1,467 ------------ ------------ 40,256 39,982 Long-term debt 120,000 120,000 Long-term liability 6,747 5,869 Site restoration and abandonment 264 150 ------------ ------------ 167,267 166,001 Shareholders' equity Share capital 119,726 118,751 Retained earnings 23,024 19,928 ------------ ------------ 142,750 138,679 ------------ ------------ $ 310,017 $ 304,680 ------------ ------------ ------------ ------------ CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Thousands of U.S. dollars, except per share amounts) ------------------------------------------------------------------------ Three months ended Nine months ended Sept. 30, Sept. 30, 1998 1997 1998 1997 ------------------------------------------------------------------------ R e v e n u e s Oil and natural gas sales $ 19,993 $ 23,097 $ 56,507 $ 52,298 Other income and expense 81 1,785 2,500 2,779 -------- -------- -------- -------- 20,074 24,882 59,007 55,077 -------- -------- -------- -------- E x p e n s e s Royalties 5,435 5,128 15,334 14,257 Operating 3,126 2,092 8,223 6,623 Inventory adjustment - 6,483 - 9,373 General and administrative 2,119 866 5,463 3,310 Labour settlement costs - 565 - 565 Interest expense 3,879 3,755 11,494 4,958 Depletion and depreciation 4,309 3,037 10,812 7,367 Change in estimate of long-term liability - - 3,969 - -------- -------- -------- -------- 18,868 21,926 55,295 46,453 -------- -------- -------- -------- I n c o m e b e f o r e t a x e s 1,206 2,956 3,712 8,624 Income taxes Current - 3,150 11 6,254 Deferred (recovery) 281 (1,168) 605 (1,327) -------- -------- -------- -------- 281 1,982 616 4,927 -------- -------- -------- -------- N e t i n c o m e $ 925 $ 974 $ 3,096 $ 3,697 -------- -------- -------- -------- -------- -------- -------- -------- Net income per share, basic $ 0.02 $ 0.02 $ 0.06 $ 0.07 -------- -------- -------- -------- -------- -------- -------- -------- Net income per share, fully diluted $ 0.02 $ 0.02 $ 0.06 $ 0.07 -------- -------- -------- -------- -------- -------- -------- -------- CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (Thousands of U.S. dollars, except per share amounts) ------------------------------------------------------------------------ Three months ended Nine months ended Sept. 30, Sept. 30, 1998 1997 1998 1997 ------------------------------------------------------------------------ O p e r a t i o n s Net income $ 925 $ 974 $ 3,096 $ 3,697 Items not affecting cash: Depletion and depreciation 4,309 3,037 10,812 7,367 Amortization of deferred financing costs 443 350 1,294 770 Deferred income taxes (recovery) 281 (1,168) 605 (1,327) Change in estimate of long-term liability - - 3,969 - Other 420 - 420 - -------- -------- -------- -------- Cash flow from operations 6,378 3,193 20,196 10,507 Change in non-cash working capital (8,827) 16,132 (7,755) 24,215 -------- -------- -------- -------- (2,449) 19,325 12,441 34,722 -------- -------- -------- -------- F i n a n c i n g A c t i v i t i e s Issue of 10 3/4% senior notes - - - 120,000 Decrease in long-term debt - - - (4,492) Decrease in long-term liability - - (2,309) - Issue of common shares and special warrants 32 3,913 975 38,520 Decrease (increase) in other assets (613) 516 (943) (2,235) -------- -------- -------- -------- (581) 4,429 (2,277) 151,793 -------- -------- -------- --------

To: Kerm Yerman who wrote (13743)	11/24/1998 3:10:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Sunwing Energy of Calgary concludes agreement to develop production plans for new Tuyuke oilfield in China BEIJING, Nov. 23 /CNW/ - Robert Friedland and Patrick Chua, Co-Chairmen of Sunwing Energy Ltd., of Calgary, announced today that the company has signed an agreement to establish its third oilfield project in China. The latest project involves a joint study of the potential development of the Tuyuke Oilfield in the Tuha Basin of Xinjiang Autonomous Region, northwestern China. Preliminary Chinese exploration has identified more than 800 million barrels of oil-in-place in the field, located 100 kilometres east of the city of Turpan. Sunwing will undertake the study with Tuha Petroleum Exploration and Development Bureau, which currently is producing about 21 million barrels of oil a year. The Tuha bureau represents the interests of China National Petroleum Corporation, the state-owned enterprise with which Sunwing already has two active production sharing contracts. Sunwing will initially fund and provide Canadian technology to evaluate the most feasible method to develop and produce oil from reservoirs in the Tuyuke field that range in depth from 2200 to 3000 metres. Many wells already have been successfully tested by the Tuha bureau. Sunwing expects that the initial study phase will take up to six months to complete. The agreement calls for the signing of a production sharing contract following completion of the joint study to allow Sunwing to fully develop the oilfield and manage commercial production operations, using Canadian technology and management. The Tuyuke agreement was signed by Cai Zhigang, President of the Tuha Petroleum Exploration and Development Bureau, and Gerry Moench, President of Sunwing. It was signed in Beijing in the presence of Canada's Minister for International Trade, Sergio Marchi, and the Chairman of China's State Development Planning Commission, Zeng Peiyan. Sunwing is a privately held Canadian company that focuses on oil and gas development in China. The company already has established oil production using Canadian technology from its Zhou Block 13 project on the Daqing oilfield. Cumulative oil production for the full three-month period to October 31, 1998, amounted to more than 22,000 barrels of oil. Sunwing's other project, Dagang, is expected to be pilot-tested in 1999. The company is in advanced discussions with major, integrated foreign oil producers to provide financing for the Daqing and Dagang projects. Sunwing has reached an agreement with Black Sea Energy Ltd., of Calgary (BSX on the TSE), to merge the operations of the two companies and form a new entity that will have interests in oil-rich regions of China, Russia, Southern California and Peru. The proposed merger is subject to necessary approvals by shareholders and regulatory authorities, with share ratios in the new company to be determined by independent valuations of Sunwing and Black Sea.

To: Kerm Yerman who wrote (13743)	11/24/1998 3:13:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY DISPOSITION / Harken Announces Acquisition of Parkcrest Explorations Interest in Alcaravan and Miradores Blocks DALLAS, Nov. 23 /CNW/ -- Harken Energy Corporation (Amex: HEC) announced today that it signed a definitive Purchase and Sale Agreement with Parkcrest Explorations, Ltd. (Alberta Exchange: PKC) of Vancouver, British Columbia, Canada pursuant to which Harken will purchase all of the interests held by Parkcrest in the Alcaravan and Miradores Association Contract areas located in the Llanos Basin of Colombia. Parkcrest originally acquired a 25% beneficial working interest in this area through Harken's subsidiary, Harken de Colombia, Ltd., in January, 1997. Subsequent to that time the group has drilled three wells, including the Estero #1, Estero #3, and Canacabare #1, acquired a significant amount of new 3-D seismic data, and constructed the Palo Blanco pipeline for deliveries of crude oil from the Palo Blanco field. Under the terms of the purchase agreement entered into between Harken and Parkcrest, Harken will forgive an undisclosed amount of debt owed by Parkcrest relating to these operations and will additionally issue to Parkcrest 1,350,000 shares of Harken's $.01 par value common stock. The closing of this transaction is subject to various conditions as agreed upon in the purchase agreement including Parkcrest obtaining shareholder approval at an Extraordinary Stockholder Meeting, which it has called for December 30, 1998. Following the expected stockholder approval at Parkcrest's meeting, the transaction is expected to close immediately. Harken's Chairman, Mikel D. Faulkner, stated "We have been pleased with Parkcrest as a participant in this project over the past two years and feel Harken's acquisition of their interest in our Alcaravan area and the Palo Blanco Field discovered there will benefit Harken over years to come, while providing Parkcrest with potential for continued upside through its ownership of these Harken shares."

To: Kerm Yerman who wrote (13743)	11/24/1998 3:31:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Zargon Oil & Gas Ltd. Third Quarter Report ZARGON OIL & GAS LTD. - NINE MONTHS ENDED SEPTEMBER 30, 1998 Date: 11/23/98 6:27:55 PM Stock Symbol: ZAR Zargon Oil & Gas Ltd. reported cash flow of $4.57 million and earnings of $1.10 million for the nine months ended September 30, 1998. Because of persistent low oil prices in 1998, revenue, cash flow and earnings were each less than in the first nine months of 1997, but were higher than in any prior corresponding period. A four year comparative table follows: ---------------------------------------------------------------- Cash Earnings/ Cash Flow/ Earnings(1) Share(2) Flow(1) Share(2) Revenue(1) --------------------------------------------------------------- Nine Months: 1998 $1.10 $.09 $4.57 $.34 $10.21 1997 $1.95 $.16 $5.64 $.46 $12.29 1996 $1.05 $.11 $3.49 $.37 $8.34 1995 $0.67 $.08 $2.38 $.29 $6.13 Third Quarter: 1998 $0.29 $.03 $1.44 $.10 $3.51 1997 $0.58 $.05 $2.10 $.17 $4.35 1996 $0.41 $.04 $1.34 $.14 $3.02 1995 $0.31 $.04 $0.87 $.10 $2.10 (1)Millions of Dollars (2)Fully Diluted Shares --------------------------------------------------------------- On a fully diluted per share basis, cash flow for the nine month period was $.34 in 1998, a decrease of 26 percent from $.46 in 1997. Earnings per share for the nine month period declined 44 percent to $.09, down from $.16 in 1997. These lower financial results were a consequence of significantly lower oil prices. Oil and liquids prices averaged $17.83/Bbl in the third quarter of 1998 and $17.96/Bbl in the nine month period, down 27 percent from the $24.76/Bbl received in the first nine months of 1997. Gas prices averaged $1.76/Mcf in the third quarter and $1.82/Mcf in the nine month period, virtually unchanged from the $1.81/Mcf received in the first nine months of 1997. Production of crude oil and liquids averaged 1,460 Bbl/d in the 1998 nine month period, a gain of 7 percent from 1,367 Bbl/d in 1997. Average daily gas production of 6.04 MMcf/d changed very little from 6.16 MMcf/d in 1997. Zargon restrained capital spending during the second half of 1997 and the first half of 1998 in the then prevalent high cost environment for land, property acquisitions and services. During that period Zargon chose to focus on improving the profitability of its existing production base. As a result of these initiatives, production costs in 1998 have been reduced 10 percent to $6.24/BOE. Zargon's expansion program was resumed in late summer 1998 with the result that the average October 1998 production was approximately 2,360 BOE/d as compared to 2,104 BOE/d in the 1998 third quarter. Further production gains primarily from the Jarrow and Hamilton Lake gas properties are expected in the fourth quarter. Net capital expenditures for the first nine months of 1998 were $9.90 million with $6.18 million, or 62 percent of the total, being spent in the third quarter. These expenditures included the September $4.37 million purchase of oil properties primarily in the Taber area of Southern Alberta. This purchase brought Zargon 265 BOE/d of production and proved plus probable additional reserves of 1,049 MBOE as assigned by independent engineers. Zargon has identified substantial oil exploitation and development upside in the operated Taber properties. Waterflood modifications and a 3D seismic program will be conducted in the first quarter of 1999 with additional development drilling to be pursued pending the improvement in oil prices. Zargon's balance sheet remains strong. After taking into account the recently announced 1.80 million special warrant "bought deal" equity issue at a price of $2.90 per share, Zargon's long term debt will be approximately $5.7 million which is less than one year's cash flow at the current depressed levels. Throughout 1998, Zargon has strengthened its management team in order to efficiently conduct an aggressive 1999 capital program during a period of reduced industry competition. Zargon's pro forma $12.8 million of available bank lines coupled with the anticipated increased cash flows from expanded production volumes will fund a $15+ million 1999 capital budget focused on the expansion and exploitation of existing gas properties, new gas exploration opportunities and the acquisition of oil properties with substantial exploitation potential. Zargon Oil & Gas Ltd. is an oil and gas company listed on the Toronto Stock Exchange trading under the symbol ZAR. Subsequent to the 1.80 million special warrant transaction, Zargon has 14.81 million shares outstanding.

To: Kerm Yerman who wrote (13743)	11/24/1998 6:31:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Big Bear Exploration uses Internet to reach workers at takeover target Blue Range Resources Financial Post In an innovative move, Big Bear Exploration Ltd. is using its Internet site to sink its claws deeper into takeover target Blue Range Resource Corp. by dispersing information about its bid directly to employees and shareholders. A question-and-answer feature on the $194-million bid was added to the site, bigbear.ca, after Big Bear was denied access to Blue Range's employees, said Jeff Tonken, the chairman of Big Bear. "I tried to communicate to them that if they want to talk to us, we are around," he said. "Usually what happens in these types of takeovers is that the guy who starts it all is painted as a terrible eater of children. Well, we don't eat children, and we have concern for their employees." Financial Post Mr. Tonken said Big Bear would offer jobs to most of Blue Range's 60 employees if the takeover were successful. The Calgary company rolled out last week a bid for control of Blue Range, a natural gas producer five times its size. The unusual proposal is supported within Blue Range by five large institutional shareholders unhappy with the company's performance and eager to see what Mr. Tonken's team can do with the the assets. They represent 33% of the stock and would tender to Big Bear's offer, unless a better one comes along. The fight is developing into a cause celebre in the city's oil community because of the two companies' large networks of friends and business associates, who may stand to lose or gain business depending on who wins. It has involved public name-calling, the start of a court fight to have Blue Range's poison pill struck down, and threats of lawsuits by Bige Bear against Blue Range's directors. It boils down to a contest over who has more credibility. On Friday, Blue Range hosted its second news conference on the issue to relay that its board of directors again recommended that the bid be rejected. Gordon Ironside, Blue Range's president and chief executive officer, called the takeover attempt a desperate move on the part of a company with high costs, large losses, few assets, and a bad track record. "It becomes clear to me that they need us more than our shareholders need them," Mr. Ironside told reporters. He said there's not a very good chance Blue Range, which on Thursday opened a data room to promote competing bids, will line up a white knight. Mr. Ironside said he doesn't mind Big Bear communicating electronically with his staff. "They could use the phone, he fired back. "There are copies of the real stuff over here," he said, waving a copy of Big Bear's circular on the bid, which he says shows a lot about the bid's weaknesses and little about its strengths. "If anyone around here has the time to look up Big Bear on the Internet, good, because the more they look, they more they won't like." Big Bear is a small company taken over by former executives of Stampeder Exploration Ltd., which in turn was sold for $1-billion last year to Gulf Canada Resources Ltd. Mr. Tonken was Stampeder's chief executive officer.

To: Kerm Yerman who wrote (13743)	11/24/1998 6:53:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Epic Energy runs into accounting problems Trading suspended after problems at Ukrainian operation Financial Post Accounting woes for companies operating in the former Soviet Union are not restricted to firms with shady pasts. While YBM Magnex International Inc. has garnered headlines for alleged links between some of its businesses in the former Soviet Union and organized crime, other firms are encountering trouble as the resource rich countries open their doors to investors. Epic Energy Inc., a Calgary-based oil producer, has had its stock suspended from trading on the Alberta Stock Exchange because of accounting problems reconciling operations from its majority-owned Ukrainian company with generally accepted accounting principles used in the West. Company officials were not available to comment on the cause of the problem. Epic is producing 345 barrels of oil a day from two Ukrainian fields and is testing a well in a third field. The junior energy firm was slapped with a temporary cease trading order by the Ontario Securities Commission for failing last week to file audited financial statements for its fiscal year ended June 30. In a statement, Epic said dealing with complex local legal and accounting issues at KrymTexasNafta, of which it owns 60%, had caused the delay. It asked the OSC, ask well as the Alberta and British Columbia securities commissions, for an extension of the filing deadline. The ASE was amenable, but the OSC was not, so the ASE halted trading until the cease trading order is lifted. Paul DeSouza, a manager with the OSC's market operations department, said firms have 140 days to file clean and audited statements after fiscal year-end. The need to protect the public's interest through timely disclosure of information underlies the OSC's stringent and consistent application of the law, he said. "You have to draw the line somewhere, and for us it's at 140 days. We take a tough stand with every company. It's not something we do lightly." Once the financial statements are completed, filed and mailed to shareholders, Epic will apply to have the OSC's restriction lifted. Accounting is the latest problem that Epic has encountered in Ukraine, where it has exploration drilling and production agreements covering about 2.8 million hectares on the Crimean Peninsula. The company said earlier this year it was looking for partners to help develop its holdings. It was also hit by a raft of board resignations in February, including chairman Gerry Maier and interim president John Beddome. The company lost $2.7-millions (US) in the six months ended Dec. 31, 1997.

To: Kerm Yerman who wrote (13743)	11/24/1998 9:08:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Service firms litmus test for oil sector's recovery Consolidation Likely: Cash-flow pinch eats into profits of providers Financial Post You don't have to dig too deep to figure out what is wrong with the Toronto Stock Exchange oil and gas services sector. It's the price of crude, which closed last week at $11.86 (US) a barrel for West Texas intermediate crude, a drop of more than 12% since Nov. 6. John McAleer, an analyst with FirstEnergy Capital Corp., says prices tend to hit service providers more than producers. "Their peaks tend to be higher and troughs tend to be lower," says Mr. McAleer. "They tend to feel the squeeze right away." Service companies have to become more competitive because of shrinking dollars from producers that eats into profits. They tend to be at the end of the funnel when it comes to seeing the benefit of higher prices. Low prices squeeze cash flows for producers, which in turn hurts their debt-to-cash flow ratio, making it more difficult for them to acquire more debt or drum up new equity. But as seen earlier this month, stocks of oil and gas service companies will go up immediately if improved oil prices are expected. Prices might not be reflected in earnings for a quarter or two after a rise in oil but stock prices respond quicklyi and more sharply than they do for producers, says Mr. McAleer. That is partially what has been happening to oil and gas services companies. The TSE oil and gas services subindex touched a 52-week low of 1271.2l one Oct. 8 and has been bid up almost 18% since. During the same period, the oiln and gas subindex has had to settle for a 5.8%f increase, while the TSE 300 climbed 23.5%. "I think there was a run up in anticipation of gas prices," says Peter Tertzakian. When natural gas prices dropped slightly, oil and gas services stocks fell off. They are down more than 10% since Nov. 6. The other factor driving the sector is the stocks have been badly beaten up from last year's heights, makingi them ripe for the picking. Within the group some of then bigger players, such as Precision Drilling Corp., remain just above their 52-week lows. Precision shares (pd/tse) dropped to $15.50 on Sept. 3. They have rebounded since but are still a long way from their 52-week high of $42.05 reached Dec. 4. The stocks fell 75¢ yesterday to close at $19. It is the same story for Enerflex Systems Ltd., whose stock (efx/tse) dropped as low as $23.85 Sept. 21, but has climbed back. It closed yesterday up 20¢ at $32.70, but is still well off its 52-week high of $45.60 reached on May 8. "This is what I would call bottomc cycle activity," says Mr. Tertzakian. "It's important it be put in those terms because this is a cyclical business. The bottom that we are feeling right now is not quite as bad as the bottom we had in 1991 and 1992. We've been there before." In this type of environment, you have to take a closer look at the companies behind the stocks. "There are some companies out ther that won't make it, they have too much debt," he says. Mr. Tertzakian recommends targeting larger companies with "healthy balance sheets," which can grow through acquisition or competitive clout at the expense of others. Ensign Resource Service Group Inc. looks strong from his vantage point. Its results for the third quarter ended Sept. 30 were down from a year ago. Net income dipped to $7-million (30¢ a share) from $19.7-million (96¢), but they were strong relative to the sector. The company's shares (esi/tse) closed yesterday down 25¢ at $16.75. "The big companies not only have backbone, they can view this sort of environment as opportunistic," Mr. Tertzakianh says, adding some takeover and merger deals are undoubtedly in the works. "It's an attitude of eat or be eaten," he says. The longer oil prices remain flat, the more companies once skeptical of consolidation will realize it is a necessity. With many analysts suggesting the slump will extend until next winter, mergers and acquisition seem even more likely. James Stone, an analyst at Shroder & Co. in New York, agrees oil and gas service stocks would jump immediately if oil prices shot up as investors anticipated future gains. But he does not hold out much hope that will happen. "Without any significant change in the outlook for the price of oil it's going to be reasonably depressed," Mr. Stone says, adding oil inventory reductions would not have much impact in 1999. Despite the fact natural gas prices remain firmer than oils prices (they dropped this month), he does not believe it provides much of a buffer in the market. "On margin, they'll do better but there's no place to hide. You're earnings might not go down as much if you're providing more natural gas services, but investors aren't necessarily going to pay you for that," he says. "Besides, if oil prices stay at $12 a barrel, it won't matter because your customers won't be financially liquid enough to make a difference spending wise." Despite that, Mr. Stone is telling his clients to "buy" strong companies such as Precision, but he says they have to be prepared for a long window when it comes to taking profits.

To: Kerm Yerman who wrote (13743)	11/24/1998 10:01:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

IN THE NEWS / Natural Gas will fuel Anderson in '99 CALGARY SUN Few oilpatch officials can say they expect a better year next year and mean it. Low oil prices, now under $12 US a barrel, have battered the bottom lines of everyone in the industry. But J.C. Anderson, head man of Calgary-based Anderson Exploration, is one who looks forward to 1999. And not because he thinks oil prices are going to come back. "No, we expect no (in-crease) in oil anytime soon," said Anderson. "We've positioned ourselves to become more of a natural gas outfit and the outlook for gas is pretty good." Extra pipeline capacity transporting lower-priced natural gas to thirsty markets in Eastern Canada and the U.S. is expected to come on stream next month. That should push prices upward -- a stark contrast to oil which has plunged about 30% in just over a year. But even Anderson Exploration couldn't escape the wrath of low oil prices last quarter. In its financial results released yesterday, Anderson took a 47% hit in its profits last quarter to $10.2 million from $19.1 million in the same period last year. That has Anderson, already with 60% of its production in gas, shifting more of its resources into the more stable commodity.

To: Kerm Yerman who wrote (13743)	11/24/1998 10:17:00 PM
From: Herb Duncan	Respond to of 15196

ENERGY TRUSTS / NCE Diversified Income Trust (NCD.UN) TSE/ME November Distribution 1.5 Cents ($0.015) Per Unit TSE, ME SYMBOL: NCD.UN NOVEMBER 24, 1998 TORONTO, ONTARIO-- John Driscoll, President of NCE Resources Group, announced today the distribution for the month of November, 1998, for NCE Diversified Income Trust. - The distribution for November, 1998, is 1.5 cents ($0.015) per unit. - The distribution will be payable on December 7, 1998, to holders of record on November 30, 1998. - The total value of the November distribution is $336,226. - Distributions of the Trust for the last 12 months are $0.455 per unit. Trading Information NCE Diversified Income Trust trades on The Toronto Stock Exchange and the Montreal Exchange under the symbol NCD.UN. - The price for NCE Diversified Income Trust on The Toronto Stock Exchange at the close of market on November 23, 1998, was $3.24. - The Net Asset Value Per Unit (NAVPU) as of September 30, 1998, was $4.03. - NCE Diversified has a monthly distribution reinvestment plan. Monthly distributions The November distribution is lower than the previous month's, due to recent changes in the Trust's portfolio. NCE Diversified Income Trust has recently sold several holdings that paid out their distributions on a monthly basis, and purchased holdings that pay out distributions on a quarterly basis. As a result, the Trust's November distribution reflects the reduced number of holdings that pay out at every month-end. Recent portfolio changes The Trust has recently sold the following holdings, which pay distributions monthly: - Maximum Energy Trust - CPL Long Term Care REIT The Trust has recently purchased the following holdings, which pay out distributions quarterly: - Labrador Iron Ore Royalty Fund - Luscar Coal Income Fund - Legacy Hotels REIT NCE Diversified Income Trust NCE Diversified Income Trust is a closed-end trust with the objective of maximizing distributions to unitholders by investing in energy-related royalty and income trusts and, to a lesser extent, real estate investment trusts (REITs). NCE Resources Group NCE Resources Group is an oil and gas investment management organization, providing a full range of technical, operational, administrative and investor services.