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: Kerm Yerman who wrote (13832)	11/26/1998 6:46:00 PM
From: Herb Duncan	Respond to of 15196

PIPELINES /Westcoast Announces Record Investment For 1999 TSE, ME, VSE SYMBOL: W NYSE SYMBOL: WE NOVEMBER 26, 1998 VANCOUVER, BRITISH COLUMBIA--Westcoast Energy Inc. today announced its capital investment plans for 1999. The Westcoast Energy Inc. Board of Directors has approved capital spending of approximately $1.6 billion for 1999. "This is the largest capital expenditure budget in the history of Westcoast Energy Inc.," said Michael Phelps, Chairman and CEO. "We are confident that, in making these investment decisions, we will provide measured growth and bring increased value to our shareholders." "This capital investment also represents a significant and ongoing commitment to our activities in British Columbia. Our capital investment plans for Centra Gas BC, Pacific Northern Gas, our pipeline and field services operations in northeastern BC, the BC portion of the Alliance Pipeline project and the Island Co-generation project will amount to about $300 million of investment in BC alone," said Mr. Phelps. "This makes us one of the largest investors in the province." "This investment represents real opportunities for employment in the province. For example, the Island Co-generation Project which represents about one-third of our 1999 capital investment in BC., over the two year construction phase, will create about 250 construction jobs, and about 500 support and secondary jobs. When completed the new plant will employ 25 full-time operators," noted Mr. Phelps. "Similar new employment numbers will be generated by the balance of our investment." The major portions of the capital spending plans include; - 348 million for Maritimes & Northeast Pipeline (WEI 37.5 percent) - $266 million for Union Gas, - $254 million for international projects; including the Shanghai power project (WEI 32.5 percent), the Cantarell nitrogen injection project (WEI 20 percent), the Campeche natural gas compression project (WEI 45 percent), and others, - $162 million for North American power projects, - $127 million for Westcoast's pipeline and field services business, - $80 million for Centra Gas BC, Centra Gas Manitoba, and Pacific Northern Gas, - $362 million for other projects (Westcoast Capital, Enlogix Inc., and Union Energy, etc.), the Westcoast equity investment in the planned Alliance pipeline project, and for development of the Millennium and Tri-State pipeline projects. "These investments all contribute to achieving our strategy of being a leading North American company providing superior energy services value to our customers," said Mr. Phelps. Westcoast Energy Inc. (TSE: W; NYSE: WE) headquartered in Vancouver, British Columbia, is a leading North American energy company with assets of more than $10 billion. The Company's interests include natural gas gathering, processing and transmission, natural gas storage facilities and gas distribution, power generation, and international energy businesses as well as financial, information and energy services businesses. Information about Westcoast Energy Inc. is available on the World Wide Web at westcoastenergy.com.

To: Kerm Yerman who wrote (13832)	11/26/1998 7:23:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Cypress Energy Inc. Announces 1998 Nine Month Results TSE, ASE SYMBOL: CYZ.A NOVEMBER 26, 1998 CALGARY, ALBERTA--Cypress Energy Inc. ("Cypress") is pleased to announce its financial and operating results for the nine months ended September 30, 1998. /T/ (000's) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 PERCENT 1998 1997 1998 1997 CHANGE -------------------------------------------- FINANCIAL Gross production revenue $8,228 $2,545 $23,845 $7,536 +216 Cash flow from operations 4,316 1,275 11,833 3,488 +239 - per share basic 0.15 0.13 0.51 0.39 +31 Net income 392 319 1,000 865 +16 - per share basic 0.01 0.04 0.04 0.10 -60 Capital expenditures 14,169 2,852 38,786 13,321 +191 Long term debt (net of capital) 30,365 6,296 +382 Shareholders' equity 98,775 18,284 +440 Weighted average common shares outstanding 23,198,240 9,048,966 +156 OPERATING Production Barrels of oil equivalent (boe/d) 5,102 1,341 4,828 1,280 +277 Crude oil and NGLs (bbls/d) 1,789 576 1,600 509 +214 Natural gas (mcf/d) 33,124 7,658 32,281 7,711 +319 Undeveloped land (net acres) 123,859 50,024 +148 PRICES Barrels of oil equivalent ($/boe)$17.53 $20.62 $18.09 $21.57 -16 Crude oil and NGLs ($/bbl) 13.76 22.73 14.83 24.43 -39 Natural gas ($/mcf) 1.96 1.90 1.97 1.97 - Operating costs $3.72 $5.62 $3.49 $5.89 -41 /T/ OPERATIONS Average daily oil and gas production of 4,828 barrels of oil equivalent (boe) for the first nine months of 1998 represented a 277 percent increase over 1,280 boe in the first nine months of 1997. Third quarter average daily production of 5,102 boe was a 2 percent increase over the second quarter average production of 5,003 boe. Sixty-seven per cent of the company's production during the nine months of 1998 was natural gas, primarily liquids-rich, high energy content natural gas which commands a premium price. Cypress continued to experience a high level of drilling success during the nine months of 1998. A record number of wells were drilled with a total of 28 gross (25.9 net) wells drilled in the nine months with 20 gross (17.9 net) wells successful. 15 of the 28 gross wells drilled were gas wells, 5 were oil and 8 were dry. Ninety-six per cent of the wells drilled during the nine months of 1998 were exploration wells driving a year to date drilling success rate of 71 percent. Cypress drilled more than twice the number of wells compared to the same period of 1997, when 14 gross (7.8 net) wells were drilled. FINANCIAL Revenue of $23.8 million represents a 216 percent increase from $7.5 million for the same period in 1997. Cash flow from operations increased 239 percent to $11.8 million ($0.51 per share basic) compared to $3.5 million ($0.39 per share) for the same period in 1997 despite a 39 percent decrease in the crude oil and NGL price received. During the third quarter the company hedged approximately 10 mmcf/d of gas representing roughly 30 percent of production for a twelve-month period beginning November 1, 1998 at a weighted average field price of $2.77 per mcf. Operating costs decreased 41 percent compared to the prior year from $5.89 per boe to $3.49 per boe and overhead expenses decreased 52 percent to $1.14 per boe compared to $2.38 per boe during the same period in 1997. Largely through efficiencies gained in both operating costs and overhead costs, Cypress was able to maintain a high operating netback of $10.89 per boe and a netback after overhead expenses of $9.75 per boe for the nine month period. Capital expenditures increased by 191 percent to $38.8 million as a result of the significantly higher drilling levels compared to the prior year. Cypress will invest up to $17 million in additional capital expenditures in the fourth quarter of 1998 to fulfil our 1998 capital budget of $55 million, the expenditures will be financed from cash flow and conventional bank debt; long term debt at the end of September was $30.4 million. Cypress Energy Inc. is a publicly traded Canadian energy company involved in the exploration, development and production of crude oil and natural gas in western Canada. The company's shares are listed on The Toronto Stock Exchange and The Alberta Stock Exchange under the symbol CYZ.A.

To: Kerm Yerman who wrote (13832)	11/26/1998 7:29:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Causeway Closes Catalina Acquisition Funding Further Oil and Gas Exploration November 25, 1998 Close $0.80 VSE SYMBOL: CUW NOVEMBER 26, 1998 CALGARY, ALBERTA--Causeway Energy Corporation (CUW-VSE) formerly Ohio Resources Corporation today is pleased to announce the closing of the purchase of 100 percent of the outstanding securities of Catalina Energy Corporation. Post closing Causeway is currently producing 810 Boe/d, 75 percent of which is natural gas. A well drilled in August at Turin is currently producing 500 mcf/d and 80 bopd., Causeway has 100 percent interest in this well. The company further announces a private placement of 500,000 flow through common shares priced at $0.90 per share. The private placement is subject to regulatory approval. Management has agreed to subscribe for approximately 1/3 of the issue. Proceeds of $450,000 will be used to fund a portion of the company's upcoming 3-D seismic program and drilling at Turin scheduled to commence upon closing of the issue. During the next 3 months Causeway will participate in the drilling of 5 wells.

To: Kerm Yerman who wrote (13832)	11/26/1998 7:32:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Q Energy Limited Announces Nine Month Financials and Updates Operations ASE SYMBOL: QE NOVEMBER 26, 1998 CALGARY, ALBERTA--Q Energy Limited today announced its unaudited financial results for the nine months ending September 30, 1998. /T/ Nine Months Ended Three Months Ended September 30 September 30 -------------------------------------------------------------- 1998 1997(3) 1998(2) 1997(3) -------------------------------------------------------------- Total Revenues $763,000 $14,000 $633,000 $14,000 Net Income ($1,188,000)(1)($23,000) ($74,000) ($23,000) Cash Flow $6,000 ($20,000) $184,000 ($20,000) Average Shares (Basic) 18,475,212 16,910,937 - - Gas Sales (Mmcf/d) 1.4 0.1 4.0 0.1 Average Gas Price ($/Mcf) 1.80 1.78 1.77 1.78 /T/ (1) Includes loss in second quarter resulting from sale of certain properties. (2) Includes production and revenue adjustments for Burstall acquisition effective March 1, 1998. (3) Q Energy began operations on September 16, 1997. Q Energy also advises that several third parties have committed, subject to the execution of a formal agreement, to farmin and conduct a multi-well gas development drilling program on a portion of Q's lands on the Burstall project. Under the terms of the agreement, Q Energy, as operator, will receive gross overriding royalty, processing and other related fees. It is expected that the drilling program will comprise between 48 and 70 wells and commence in the spring of 1999. In addition, the agreement allows for further development drilling on adjacent lands owned by Q Energy. The new production is expected to be better than adjacent historical production as the result of the application of innovative completion and production techniques. Production from the new drilling will utilize existing available capacity in Q's 100 percent owned compressor facility. The Company is currently producing approximately 2.0 Mmcf/d of natural gas. Recently, Q locked in a price of approximately $2.90/mcf for the first 1.0 Mmcf/d of sales for the period November 1, 1998 to March 31, 1999.

To: Kerm Yerman who wrote (13832)	11/26/1998 7:36:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Centurion Continues to be Profitable, Third Quarter Results, Quarter and Nine Months Ended September 30, 1998 TSE SYMBOL: CUX NOVEMBER 26, 1998 CALGARY, ALBERTA--We are pleased to present the third quarter results for Centurion Energy International Inc. Company production levels continued to be strong for the third quarter with average production for Q3 of nearly 3,000 bopd and average production for the nine months ended September 30, 1998 of 2,800 bopd. Cash flow continued a positive trend, adding $2.5 million for Q3 and increasing the year to date cash flow to $6 million up from the $4.9 million generated from Tunisian operations in the comparable nine months in 1997. Q3 continued to be profitable with year to date profit for the company totaling $1.55 million in spite of the continuing lower oil prices. /T/ HIGHLIGHTS OF FINANCIAL RESULTS Tunisia Canada Total 1998 1997 1998 1997 1998 1997 ---- ---- ---- ---- ---- ---- Oil and Gas Sales ($ Million) Qtr ended Sept 30 3.8 3.0 - (0.5) 3.8 2.5 9 Mo ended Sept 30 10.7 9.2 - 2.7 10.7 11.9 Sales Price Per Bbl ($) 9 Mo ended Sept 30 15.32 27.24 - 22.10 Cash Flow ($ Million) Qtr ended Sept 30 2.5 1.8 - (0.4) 2.5 1.4 9 Mo ended Sept 30 6.0 4.9 - 1.8 6.0 6.7 Cash Flow Per Share ($) Basic Qtr ended Sept 30 0.06 0.03 9 Mo ended Sept 30 0.14 0.15 Fully Diluted Qtr ended Sept 30 0.04 0.02 9 Mo ended Sept 30 0.10 0.13 Earnings ($ Million) Qtr ended Sept 30 1.0 (0.1) 9 Mo ended Sept 30 1.6 1.9 Per Share Basic ($) Qtr ended Sept 30 0.02 - 9 Mo ended Sept 30 0.04 0.04 /T/ FINANCIAL RESULTS The results of operations for 1998 reflect our ongoing activity in North Africa where we currently have production only in Tunisia. Comparable numbers for 1997 include operations, cash flow and profits from Canadian producing properties for the first six months of the nine month period included in this report. Canadian operations that are discontinued contributed $1,800,000 ($0.04 per share) to cash flow and $560,000 ($0.01 per share) to earnings for the nine months ended September 30, 1997. /T/ Production Summary Tunisia Canada Total 1998 1997 1998 1997 1998 1997 ---- ---- ---- ---- ---- ---- Average (boepd) Q3 3,000 1,300 - - 3,000 1,300 9 Mo ended Sept 30 2,800 1,400 - 600 2,800 2,000 Total Production (mboe) Q3 275 125 - - 275 125 9 Mo ended Sept 30 760 390 - 175 760 565 /T/ Cash Flow and Net Earnings Cash flow from operations for the nine months ended September 30, 1998 was $5,952,000 ($0.14 per share, basic) compared to $6,707,000 ($0.15 per share, basic) for the comparable period in 1997. Cash flow for Q3, 1998 was $2,494,000 ($0.06 per share). Earnings for the nine months ended September 30, 1998 were $1,550,000 ($0.04 per share, basic) compared to a profit of $1,924,000 ($0.05 per share, basic) for the comparable period in 1997. Earnings for Q3, 1998 were $936,000 ($0.02 per share, basic). Cash flow and earnings for 1998 remained strong despite a 44 percent drop in oil prices compared to the comparable period in 1997. Liquidity, Capital Resources and Capital Expenditures Capital expenditures for the nine months ended September 30, 1998 totaled $13,763,000. Principal additions in Tunisia were the completion of the El Biban marine pipeline and onshore processing facilities, drilling and completion of two Ezzaouia field infill wells, location costs for the Al Manzah #1 exploration well, and preliminary costs for a liquids recovery plant and for the gas powered electrical generating facility to be built at Zarzis to utilize our gas production from our El Biban and Ezzaouia fields which is presently being flared. Costs incurred in Egypt include the cost of the El Wastani #1 gas well re-entry, drilling costs of the Abu Monkar #1 discovery well and additional seismic following up on the Abu Monkar discovery. Cash on hand at the end of the period was $2,438,000 compared to $12,438,000 at September 30, 1997. Working capital at September 30, 1998 was $2,023,000 compared to $12,324,000 at September 30, 1997. All expenditures planned for the balance of 1998 will be funded from cash flow and working capital.

To: Kerm Yerman who wrote (13832)	11/26/1998 7:42:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Courage Announces 9 Months Financial and Operating Results TSE SYMBOL: CEO NOVEMBER 26, 1998 CALGARY, ALBERTA--COURAGE ENERGY INC. (TSE-CEO) announces the financial and operating results for the nine months ended September 30, 1998 Revenues for the nine months increased to $9,761,202 compared to $9,491,601 in the previous year. Cash flow was relatively unchanged at $4,146,273 or $0.18 per share compared to $4,287,632 or $0.19 per share and earnings were $490,803 or $0.02 per share compared to $511,997 or $0.02 per share. /T/ Nine Months Nine Months Percent FINANCIAL 1998 1997 Change --------- ----------- ----------- ------- Revenue $9,761,202 $9,491,601 +3 Cash Flow 4,146,273 4,287,632 -3 Cash Flow per share 0.18 0.19 -5 Earnings 490,803 511,997 -4 Earnings per share 0.02 0.02 - PRICING ------- Light Oil & Ngls ($/bbl) $16.56 $24.37 -32 Heavy Oil ($/bbl) 11.62 18.63 -38 Gas ($/mcf) 2.04 2.05 - Average ($/boe) 15.98 19.86 -20 PRODUCTION & OPERATIONS /T/ Production volumes averaged 1,960 boe/d during the first nine months 1998, an increase of 12 percent from 1,750 boe/d in nine months 1997. The Company's 1998 exploration program has resulted in several new pool discoveries, and the production gains from these discoveries will impact the financial statements in the fourth quarter. Current production rates at the end of November 1998 have increased to 2,700 boe/d (760 bopd, 370 barrels ngl/d and 15.7 mmcf/d) which represents a 58 percent gas weighting. Additional production will be added during the next 60 days with the pipeline connection of a second gas well at Red Creek, British Columbia, a gas well at Beatton River, British Columbia, three gas wells at Gabriel, Alberta, one gas well at Leduc, Alberta and three oil wells at Fiskerton, United Kingdom. Courage Energy Inc. is an oil and natural gas company with operations in western Canada and the onshore United Kingdom. The principal business is the exploration, development and production of oil and natural gas. The common shares of Courage are listed on the Toronto Stock Exchange under the symbol "CEO".