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

To: Kerm Yerman who wrote (14018)	12/3/1998 6:19:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Petro-Canada President Not Panicked By Slumping Oil Prices Or Mega-Takeovers The double shock wave of slumping world oil prices and mega-mergers won't sway Petro-Canada from further developing Alberta's oilsands or the East Coast offshore, company president Jim Stanford said Wednesday. But Stanford wouldn't speculate on what effect Exxon's purchase of Mobil, a deal worth almost $74 billion US to create the largest corporation in the world, would have on the Canadian industry or his company. "They still have some statements to make as to how they'll structure the deal," said Stanford after a speech to the Canadian Heavy Oil Association in which he outlined Petro-Canada's continued commitment to developing northeastern Alberta's oilsands. "Clearly the Exxon-Mobil merger is a direction the industry is going worldwide and we've seen that with BP and Amoco." He wouldn't say if Petro-Canada -- the former Crown corporation privatized in 1991 -- plans to lodge a complaint against the merger. The merger could see Exxon subsidiary Imperial Oil Ltd. of Toronto gobble up Calgary-based Mobil Canada. Mobil Canada is a major player in developing Canada's East Coast offshore energy industry, with key stakes in the Sable Island gas development and Hibernia oil project, which it shares with Petro-Canada and others. "The industry is going through some significant changes and this is part of it," said Stanford. "The challenge for all companies is to be able to recognize that and remain competitive and determine where their advantages are." Stanford ducked questions about whether Petro-Canada is considering a similar merger or takeover as low crude prices, hovering around the $11 US a barrel level, put the clamp on cash flows. "The impact of low prices is that there is less cash flow and therefore less money for capital investment," he said. "We have to become very selective where we place that capital. "We still have strong cash flow and a strong balance sheet, so we are continuing on a growth profile even in this price environment." Petro-Canada did try to buy the Canadian assets of Ultramar Canada earlier this year. That deal was scuttled when the Competition Bureau raised concerns about the concentration of ownership in the refining and retailing sector in Eastern Canada. Petro-Canada is concentrating on oil development, largely through the East Coast and its oilsands projects. It had hoped to sell off subsidiary ICG Propane Inc. to Superior Propane Inc. for $175 million. But once again the Competition Bureau intervened. It's going to court to block the takeover of ICG by Superior. The proposed merger, which would give the combined companies 70 per cent of the national propane market on average, is to close Monday. A hearing is scheduled Friday in Ottawa. Despite this most recent setback, Stanford chuckled when asked if he believed the Competition Bureau had a vendetta against Petro-Canada. "We have a strategy of looking for value where we believe we can find it and we will pursue whatever opportunities there are to create that."

To: Kerm Yerman who wrote (14018)	12/3/1998 6:31:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Competition Cops Make False Arrest - Superior Propane & ICG Propane Thursday, December 3, 1998 The Globe & Mail And so, the competition cops come riding to the rescue once again. The federal Competition Bureau and its leader, the crusading Konrad von Finckenstein, say Superior Propane's proposed $175-million purchase of ICG Propane would cause such "irreparable harm" to propane customers everywhere that it must be stopped by any means necessary. After more than a month of negotiations, during which Superior offered to make a number of changes to its business practices in order to make the deal more palatable, the bureau announced on Tuesday that no agreement was possible and that it is going to the federal Competition Tribunal to ask for an order that will prevent the deal from going forward. True to form, Superior chief executive officer Grant Billing has said he will fight the application before the tribunal, and made it clear he plans to acquire ICG one way or another. His statement following the bureau's announcement also reiterated some of the proposals the company has tried to come up with to alleviate the competition watchdog's concerns. Essentially, the bureau's decision on the deal rejects all the arguments put forward by Superior about why it should be allowed to proceed. The bureau does not believe that other fuels such as heating oil and natural gas compete with propane to a significant extent, nor does it believe that independent propane operators provide enough competition. Instead, the bureau said the combined entity's market share would be so extensive that it would give the company enormous power. "The bureau must step in to prevent the creation of local and national monopolies in this mature industry," Mr. von Finckenstein said, adding that the bureau had received 600 complaints from various individuals and groups. According to an affidavit by John Pecman, a senior commerce officer with the bureau, more than 500 of those complaints were in response to questionnaires the organization sent out. However, he added that the bureau also got 90 unsolicited complaints -- which he says is "a figure rarely, if ever before reached in past transactions reviewed by the bureau." This should be the first clue that the bureau likes to blaze its own trail, rather than waiting until people actually complain that anti-competitive things are going on in an industry. All those years the bureau has been investigating mergers -- not to mention three or four separate inquiries into alleged gasoline price fixing -- and it has never gotten more than 90 unsolicited complaints about an industry it's been looking into? Since bureau staff say many of the complaints were received via E-mail, it's tempting to conclude that some technologically savvy critics used a bulk sending program -- such as the one that mail bombed a People magazine poll of "most beautiful people," resulting in a landslide win for Hank the Angry Drunken Dwarf (a character from Howard Stern's radio show). In any case, despite the fact that Mr. Pecman says the merger was looked into by "an investigative team of commerce officers, bureau economists, counsel and experts," it's not clear that the bureau's comments on the market's competitiveness hold a lot of water. In contrast to the picture painted by the bureau, propane industry operators say independents are competitive, and would be even more so if the merger went ahead. It's true that one of the main barriers to entry is the existence of long-term supply contracts and other restrictive agreements -- and these are two of the things Superior has said it is prepared to modify by eliminating some of the more restrictive or exclusionary provisions. However, Mr. Pecman says that isn't enough to satisfy the bureau. Even aggressive free-market proponents would agree that the competition bureau has a place in preventing anti-competitive activities such as price fixing and collusion -- the kind of duties it recently fulfilled by fining a Swiss and a German food-additive manufacturing company (the duo conspired to fix the price of citric acid and were fined $6.7-million). But the bureau's outrage at deals like Superior raises a lot of questions about who determines what is a truly competitive market and what isn't. Why was there no inquiry into Luscar Coal's purchase of Manalta, which created the largest producer in the country with a lock on the thermal coal market? What about Agrium's purchase of Viridian in 1996, which gave the company a lock on the market for nitrogen fertilizer? In cases like Superior's bid for ICG, the bureau is really trying to predict the future, something that government agencies are notoriously bad at. By using the simple market share figures for the combined entity and some theories about the industry, it has come to all kinds of conclusions that are impossible to prove. Why not let the merger go ahead and then use the existing laws to go after abuses if and when they occur?

To: Kerm Yerman who wrote (14018)	12/3/1998 6:35:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Gas Idea Applauded - Flares Slated For Electricity Calgary Sun The flame may finally go out on many gas-flaring stations across the province. The provincial government an-nounced yesterday it will not charge royalties on new electricity generated from solution gas that would have otherwise been flared, or burnt off, into the air. The move is to encourage the electricity industry to use the petroleum byproduct to make power instead of polluting the environment. "This opportunity gives Albertans a double win by reducing environmental impacts from flaring while increasing power supply," said Ty Lund, minister of environmental protection. The province got the idea from the Clean Air Strategic Alliance (CASA) -- a group of Alberta environmentalists, petroleum industry representatives and other stakeholders trying to reduce the amount of residue gas flared into the air. Burning efficiency at flare sites range from 62% to 84%, leaving many chemical compounds un-burned in the air.

To: Kerm Yerman who wrote (14018)	12/3/1998 8:25:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Petro-Canada Waiting To Assess Exxon-Mobil Deal By CLAUDIA CATTANEO The Financial Post CALGARY -- Jim Stanford, Petro-Canada's president and chief executive, said yesterday it's too early to assess whether he will oppose the proposed merger of Exxon Corp. and Mobil Corp. when the matter comes before the federal government's Competition Bureau. "I can't tell you what I am going to do or not because I don't know what it is," Mr. Stanford said following a speech about his company's heavy oil operations. "Clearly, the Exxon/Mobil merger is the direction the industry is going worldwide," he said. "The challenge for oil companies is to be able to recognize that and remain competitive and determine where their advantages are." Exxon confirmed Tuesday it will purchase Mobil of Fairfax, Va., for an estimated $77-billion (US). Analysts say the Canadian operations of the combined company are likely be purchased by Toronto-based Imperial Oil Ltd., which is already Canada's largest oil company. Imperial is Petro-Canada's major competitor and one of four Canadian integrated oil companies. The other two are Shell Canada Ltd. and Suncor Energy Inc. Petro-Canada itself has attempted to increase its competitiveness with two major initiatives that have run afoul of the competition bureau. Petro-Canada's sale of its ICG Propane Inc. unit to Superior Propane Inc., which is scheduled to close Dec. 7, is headed for a confrontation before the federal Competition Tribunal. The bureau is seeking a temporary injunction to keep the $175-million deal from closing. In July, Petro-Canada, still 18% owned by the federal government, voluntarily walked away from an $8-billion joint venture to combine its refining and marketing operations with Ultramar Diamond Shamrock Corp. after the bureau expressed "serious concerns" that it would lessen competition and raise prices for gasoline retailers. Mr. Stanford said he's not angry at the federal government agency. "We have a strategy to look for value where we believe we can find it and we will pursue whatever opportunities there are. And clearly some of the ventures we think would be value creating . . . have been found wanting by the Competition Bureau," he said.

To: Kerm Yerman who wrote (14018)	12/3/1998 8:48:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Investing Briefs - Tethys Energy National Post ARC raises Tethys stake CALGARY - ARC Canadian Energy Venture Fund has bought 2.4 million common shares and 1.2 million share purchase warrants of Tethys Energy Inc. (TET/tse), boosting its stake in the firm to about 26%. ARC said it exercises control over 7.7 million shares or warrants. Each warrant is exercisable into one common share of Tethys at $1.40 until Nov. 30, 2001. The purchases were made for investment purposes, ARC said. ARC is an investment fund specializing in oil and gas exploration and production. Chaney Holds 10% Of Tethys CALGARY - Houston-based R. Chaney & Partners III LP and R. Chaney & Partners IV LP said through a private placement they now hold a total of three million common shares of Tethys Energy Inc. (TET/tse), representing a 10% stake. The partnerships also own 125,000 warrants of Tethys, each exercisable into one common share. The shares were purchased for investment purposes. Both limited partnerships are U.S. investment funds specializing in emerging energy technology companies.

To: Kerm Yerman who wrote (14018)	12/3/1998 9:03:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Oil Prices Hit Worst Slump In 25 Years Experts predict layoffs on way Charles Frank Calgary Herald Slumping oil prices are causing energy industry officials to take a hard look at 1999 exploration budgets and experts predict layoffs may occur. Rock-bottom prices also take a toll on Alberta's provincial budget which derives about 22 per cent of its tax revenue from the industry. As 1998 draws to a close, Calgary's oil and gas industry finds itself in the worst price dip in 25 years. "It's white-knuckle time," said Peters & Co. analyst Wilf Gobert Wednesday after West Texas intermediate, the oil industry's benchmark, closed at $11.24 a barrel US. "We're headed for layoffs and more business combinations." Although Wednesday's closing oil price was up 13 cents from Tuesday's 12-year low of $11.11, the average price of oil has been in a continuous decline for 24 months, said Gobert. That makes the slump the worst since 1973. Alberta Treasurer Stockwell Day said falling prices are a concern. "It's a daily morning ritual for me, checking out those prices," he said. But plummeting energy prices aren't as much of a concern as they were in the last major energy industry downturn in the 1980s, he said, when companies weren't as well capitalized and managed as they are now. At that time, 59 per cent of the province's tax revenue came from oil and gas. Still, last February's projection of $644 million in crude oil revenues this fiscal year has been lowered to $483 million. A surplus of $2.6 billion last year will fall to the $700-million range this fiscal year, he said. For the industry it's worse, says Gobert. "For a lot of oil companies, this year has been a disaster," he said, adding that when the dust clears, the price of oil in 1998 is expected to average about $14.50 US a barrel. That would be a far cry from the $16-$18 a barrel industry observers were predicting at the start of the year and would be the lowest average since 1986, when the price of oil averaged $14.90 a barrel US. That news is already reverberating through the industry. The Canadian Association of Oilwell Drilling Contractors reported that 267 rigs were active on Dec. 1, the lowest number since December 1992 when the industry had 209 rigs on the job. The CAODC had called for 10,200 oil and gas wells to be drilled in 1998, but it now appears that in spite of a relatively strong showing by the province's gas industry, that number will not be met by year end. "The confidence of investors has been shaken by this price decline," says CAODC general manager Dick Herring. "If the current price slump persists into the first quarter of next year, then you'll see the impact really starting to hit home next summer." In 1998, 40 per cent of the year's drilling activity came in the first quarter of the year. By comparison, CAODC officials now say they expect only 30 per cent of 1999's activity to come in the first three months of the year as oil companies struggle to keep a rein on capital expenditures. Even so, Herring insists it is too early to push the panic button. Other industry officials are also taking a sanguine approach. "Crude is a commodity. It's going to go up and down and through cycles and you have to have faith in the industry and be in it for the long term," Petro-Canada president and chief executive officer Jim Stanford told an industry conference Wednesday. "Clearly the impact is there is less cash flow and therefore there is less money for capital investment, so we have to become very selective about where we place our capital." However, Stanford said it is possible to carry on business even at current prices. "We are continuing on a growth profile even in this price environment and it's a growth profile that can be funded through our ability to generate cash in this price environment." Stanford said Petro-Canada's East Coast projects at Hibernia and Terra Nova are "low-cost operating operations" that will break even at around $12 US. However, Gobert cautions that the industry outlook as a whole will remain bleak until the oversupply of oil on world and North American markets is reduced. At this point, few prognosticators are willing to hazard a guess when that may be. Gobert said the recent meeting of the Organization of Petroleum Exporting countries was a "disaster" that resulted in the worst of all possible scenarios. "They didn't extend current production cuts and there were no new cuts. Add in record warm temperatures in parts of North America and it looks like it could be a bleak winter." The Alberta treasurer agrees, but does not see a cut in spending. The bottom line is that the province doesn't anticipate having to trim programmed spending as a result, Day said. "We don't want to take this hit, but we can," he said. "We have healthy income tax flows and this is not affecting our programmed spending."

To: Kerm Yerman who wrote (14018)	12/3/1998 9:27:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

NATURAL GAS / Market Wrap Ending 12/2/98 Wednesday December 2, 4:50 pm Eastern Time NYMEX gas ends down, Jan hits new low after AGAs NYMEX Hub natgas futures, hit by technical selling when an early bout of short covering faded, mostly ended down Wednesday in moderate trade, then lost more ground on ACCESS after a bearish weekly inventory report. In the day session, January skidded 7.2 cents to close at $1.886 per million British thermal units, then dipped on ACCESS to a new contract low of $1.83 shortly after the AGA report. Earlier, February settled 5.9 cents lower at $1.931, then slipped to $1.89 after the weekly storage data, also a new benchmark. Most other months ended down 0.1 to five cents. ''It's an extremely bearish number. It's almost winter, and we're still building stocks,'' said one East Coast trader, adding shorts rushed to cover early today amid forecasts for some cooler weather next week. AGA said Wednesday U.S. gas stocks rose last week by eight bcf, well outside Reuter poll estimates for a 15-25 bcf draw. Overall storage stands at 3.077 tcf, or 95 percent of capacity, versus last year's total of 2.606 tcf, which was 82 percent full. Eastern inventories fell seven bcf to 95 percent of capacity. Consuming region west storage rose eight bcf for the week. Stocks in the producing region gained seven bcf. WSC still expects above to much-above normal temperatures over most of the U.S. through Sunday, with the Midwest climbing to as much as 25 degrees F above normal. The one exception was the West, where readings have dipped to normal or slightly below normal and are expected to stay that way for the period. Cooler weather was forecast for the Midwest early next week, with temperatures expected to moderate to about seasonal levels. The western U.S. is also expected to see normal to below-normal temperatures. Technically, January support was now seen at tonight's contract low of $1.83 and then at prominent spot continuation lows of $1.78 and $1.61, which is the spot low for the year. January resistance was pegged first at yesterday's gap between $2.06 and $2.19, then at $2.27 and in the $2.35 area. In the cash Wednesday, Henry Hub swing quotes were little changed at about $1.40. Midcon pipes also were flat in the low-to-mid $1.30s. In the West, El Paso Permian firmed slightly to about the $1.40 level. Gas at the Chicago city gate held steady at about $1.50, while New York also was unchanged at about $1.80. The NYMEX 12-month Henry Hub strip slipped 3.2 cents to $2.07. NYMEX said an estimated 67,274 Hub contracts traded today, down from Tuesday's revised tally of 81,328. Wednesday December 2, 5:11 pm Eastern Time U.S. spot natgas stabilizes after 75-cent plunge U.S. spot natural gas prices stabilized Wednesday after plunging 70-75 cents from bidweek levels over the last two days, industry sources said. ''The market pretty much bottomed out yesterday. It was a good 40 cents under the (NYMEX) screen. There's also supposed to be some cold weather moving in next week,'' one Midwest trader said. Cash prices at Henry Hub were quoted mostly steady at $1.40 per mmBtu, but still down from about $2.10-2.15 during bidweek. In the Midcontinent, swing prices also leveled off, with deals reported done again in the low- to mid-$1.30s. Chicago city-gate was pegged near $1.50. In west Texas, swing Permian Basin prices were quoted in a narrower range at $1.38-1.42, while San Juan gas was seen selling at $1.38-1.45. At the southern California border, however, prices strengthened by about seven cents to $1.97-2.00 as cooler weather created some demand in the area. In the East, New York city-gate prices were quoted near $1.80, while Appalachian prices were seen trading a little higher at $1.64-1.65. Canadian natural gas prices mixed on weather, demand Canadian natural gas spot prices were mixed on Wednesday as warm weather continued to lower demand across North America, industry sources said. Prices at Alberta's AECO storage hub droppped about four cents from Tuesday trade to C$2.07/2.08 per gigajoule. The January contract was quoted at C$2.37 per GJ. The January-March winter contract was pegged at C$2.32 per GJ. Trade at Westcoast Energy's Station 2 compressor was discussed at C$2.12/2.13 per GJ, up about five cents on the day as deliveries into California from the San Juan basin were curtailed by a compressor shutdown, marketers said. Day business at the Sumas/Huntingdon border point also traded up to US$1.62 per million British thermal units, about nine cents higher than Tuesday. To the east, prices at the Emerson export point were flat at US$1.46 per mmBtu, and Niagara business was discussed at US$1.55/1.57 per mmBtu, up about two cents on the day. Wednesday December 2, 4:18 pm Eastern Time Canadian spot natural gas domestic prices - December 2nd DOMESTIC (DEC SWING) $CDN/GJ $US/MMBTU ALBERTA PLANT-GATE 1.93/1.98 1.35/1.39 ALBERTA BORDER - EMPRESS 2.06/2.11 1.44/1.48 STATION 2, B.C. 2.10/2.15 1.47/1.50 SASK. PLANT-GATE 1.93/2.98 1.35/1.39 TORONTO CITY-GATE 2.22/2.29 1.55/1.60 1-YR PCKGS - EMPRESS 2.54/2.59 1.78/1.81 AECO 2.05/2.10 1.43/1.47 N=notional. One yr package beginning Nov. 1, 1999. Canada/U.S. dollar conversion based on Bank of Canada noon rate. One year packages converted to U.S. dollars at a 12-month forward rate. Canadian spot natgas export prices - December 2nd EXPORT (DEC SWING) $CDN/GJ $US/MMBTU HUNTINGDON B.C. 2.27/2.34 1.59/1.64 KINGSGATE B.C. (TO PNW) 2.30/2.37 N 1.61/1.66 N MONCHY SASK 1.36/1.43 N 0.95/1.00 N EMERSON MAN 2.06/2.13 1.44/1.49 NIAGARA ONT 2.20/2.27 1.54/1.59 Canada/U.S. dollar conversion based on Bank of Canada rate.

To: Kerm Yerman who wrote (14018)	12/3/1998 11:55:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Real Resources Inc. Announces Major Gas Farmin CALGARY, Dec. 3 /CNW/ - Real Resources Inc. (''RER'' - TSE), as operator, along with its partner Remington Energy Ltd. has entered into a farmin arrangement comprising more than 50 sections of land held by Reserve Royalty Corporation in the Prairie River area of northwestern Alberta. By drilling 6 wells over a two year period Real and Remington will each earn a 50% working interest in the lands subject to a non-convertible overriding royalty to be retained by Reserve Royalty Corporation. Additionally, in the adjoining Meekwap multi-zone gas prone region, Real and Remington have acquired over 50 sections of Crown lands on which at least 3 wells will be drilled in 1999.

To: Kerm Yerman who wrote (14018)	12/3/1998 11:59:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Remington Energy Ltd. Announces Formation of Underwriting Syndicate for Debenture Offering CALGARY, Dec. 3 /CNW/ - REMINGTON ENERGY LTD. (''Remington'') announces that it has retained a syndicate of Canadian underwriters, led by Nesbitt Burns Inc. and including Peters & Co. Limited, CIBC Wood Gundy Securities Inc., FirstEnergy Capital Corp., Merrill Lynch Canada Inc. and Goepel McDermid Inc. in respect of a proposed public offering of convertible unsecured subordinated debentures by way of a fully marketed transaction. It is expected that a preliminary short form prospectus will be filed in all provinces of Canada on December 3, 1998. It is anticipated that approximately $60 Million of debentures will be offered, plus an additional 15% overallotment option. The exact principal amount offered, the interest rate, conversion price and other terms of the offering is expected to be set following marketing of the offering. Remington intends to use the proceeds of the offering to reduce long term debt.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:03:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. ANNOUNCEMENT / Brigdon Resources Inc. To Retsain Their Fiscal Year CALGARY, Dec. 3 /CNW/ - Brigdon Resources Inc. (TSE- BRG.A) of Calgary today announced that it will retain its March 31 financial year-end contrary to its October 30, 1998 announcement of a proposed change to December 31. This action was prompted by the proposed merger with Tikal Resources Ltd. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Press Release.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:06:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Greentree Gas & Oil Ltd. Reports Continued Success and a New Discovery in its 1998 Drilling Program TORONTO, Dec. 3 /CNW/ - Greentree Gas & Oil Ltd. is pleased to report it has successfully completed the first six of the Company's proposed eight well drilling program for 1998, in Norfolk County of Southwestern Ontario. Three of the completed wells are producing, two of the wells are hooked-up and are awaiting stimulation prior to being placed on production and the remaining well will be tied-in to the sales line in 1999. In addition to the new well completions, Greentree has also tied-in two previously shut-in gas wells to the sales line and is evaluating a third shut-in for tie-in, prior to year-end. Of the six new gas well completions to date, four will produce from the Silurian Thorold Formation one will produce from the Silurian Guelph Formation and one is a potential dual producer, Silurian Guelph/Thorold Formations. Greentree encountered significant natural gas flows in the Guelph Formation while drilling for the deeper Thorold Formation target zone in its' previous two drill locations. Based on preliminary geological mapping, geophysical well logs and analysis of rock samples from the Guelph producing interval; the wells are interpreted to have penetrated a reef structure. Apparently similar Guelph Formation reef structures in the region include: Malahide, which produced 4.24 billion cubic feet of gas (Bcfg), Brownsville (3.96 Bcfg) and Clear Creek (4.34 Bcfg)(production to 1994 inclusive, Ministry of Natural Resources). Greentree has two additional wells targeted for this prospect to be drilled by year-end and another for January of 1999. Having obtained geological information from these three additional wells, the Company will provide an estimate of reserves. The natural gas contains a low level of hydrogen sulphide (792 ppm) which will be removed by filtration. Greentree recently installed a new compressor station to handle the projected increase in production. Greentree Gas & Oil Ltd. trades on the Canadian Dealing Network under the symbol ''GGOL'' and is a producer and explorer of natural gas in Ontario. Greentree Gas & Oil Ltd. currently has 14,154,314 shares outstanding.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:08:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / D.C. Corrosion First Quarter Revenues Up 98% EDMONTON, Dec. 3 /CNW/ - Neil Magrath, President of D.C. Corrosion Corporation is pleased to announce record first quarter results of $3,617 million, an increase of 98% over the same quarter in the previous fiscal year. Earnings per share were $0.012. The results for the quarter ending September 30, 1998 reflect the impact of the Corporation's record product sale contract to the Sable Island Energy Project. Though margins were small for this contract, Management is pleased with the impact of this success on the global industrial and oilfield communities. This contract has opened many doors that have previously been closed to the Company said David Olynyk, International Marketing Manager. The Corporation has invested its cash flow and financial resources in the research and development of new products and technologies through its new subsidiary, ROM Communications Inc. ROM uses its proprietary technology to assist its customers in monitoring a variety of applications through the Orbcom Satellite system. D.C. Corrosion also continued to expand its fleet of hydra-vac excavation units with the recent addition of two trucks. While these additional expenses compromise profit margins in the short term, management believes that this type of re-investment is essential for the continued growth of the Corporation. With the slow down in the resource industry, we felt it imperative to diversify our revenue potential to continue to achieve consistent growth stated Neil Magrath, President of D.C. Corrosion Corporation. D.C. Corrosion Corporation is Western Canada's second largest company specializing in the prevention of environmental corrosion through the use of cathodic protection. The company provides corrosion consulting services, cathodic protection systems, remote satellite monitoring, materials and equipment to both private and public sectors.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:12:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. NOTICE / Ayrex Resources Ltd. Withdrawls From Chinese Joint Venture AYREX RESOURCES LTD. - AYREX CHINA JOINT VENTURE TORONTO, ON-- Ayrex Resources Ltd. ("Ayrex") reports that it has recovered slightly over $1.4 million Canadian from its oil joint venture project in China. These funds had previously been frozen in banks accounts in Yulin and Jingbian in Shaanxi Province, People's Republic of China. Under an agreement concluded last year with Camberly Energy, these funds will be shared equally with Camberly, its original partner in the oil project. Ayrex has effectively withdrawn from the Chinese oil joint venture and will concentrate its efforts in North America.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:17:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Tri Link Resources Announces Significant Oil Discoveries Deep Red River oil in-place reserves expected to exceed 100 million barrels 100% owned/working interest land block now totals 1,000 square miles Incremental Red River oil production of 2,500 - 3,000 barrels a day by March Economics ensure strategic positioning and positive returns at $14 WTI CALGARY, AB, Dec. 3 /CNW/ - Tri Link Resources Ltd. (TSE: TLR) today announced the successful and significant results to date of strategic activity it began in January, 1998 in the deep Red River oil zone underlying the Company's shallower oil producing properties in the Hazelwood Project of southeast Saskatchewan. In only eleven months, Tri Link has explored, discovered, initiated development and commenced production on a 100 percent owned land block that has doubled in size to about 1,000 square miles. The amount of land covered by wholly-owned 3-D seismic imaging has quadrupled to 800 square miles. Continuous exploration drilling at a success ratio of 50 percent has yielded significant discoveries of quality light and medium gravity oil on five separate pools. Two of the five pools are considered to be of large size with significant vertical and horizontal development potential. Development work on these two pools is proceeding and the Company expects to drill numerous high quality development wells through the next fiscal year. Total oil in place reserves, based on drilling results to date, are estimated to exceed 100 million barrels after full development of these discoveries. Nineteen wells have been drilled with at least three deep drilling rigs planned to work continuously through to breakup in March. One battery facility is under construction with another one to be added early in 1999. Fifteen wells have encountered oil with nine wells either on production or being brought on stream. Total production capability from these wells now exceeds 1,500 barrels of oil a day. From a standing start just eleven months ago, Red River production is expected to total between 2,500 and 3,000 barrels a day by the end of the Company's fiscal year in March. Gary Burns, Tri Link's President and CEO, said ''These results provide Tri Link with a cost effective platform for future growth, increased strategic ability to benefit from an inevitable upturn in oil prices, unequalled presence in the deep rights area of southeast Saskatchewan, and the capability to continue creating value for shareholders.'' Burns added, ''Our counter cyclical approach to this project makes strategic and economic sense for us over the long term. It moves Tri Link to the next level of its corporate development in a more timely and cost effective manner than would otherwise have been the case. It provides a huge land control position on a major play on which the large-scale, blanket 3-D seismic and steady deep drilling programs have combined to advance the Company's technology immensely. It positions us to benefit significantly once global oil supply and demand factors sort themselves out. ''The rate of return threshold for the Company has been substantially lowered as the economics of the development stage of the project are very appealing. Full cycle finding and on-stream costs are expected to be under $5 per barrel. We will show a significant and positive return in a low pricing environment ($14 WTI) thanks to the quality of the oil, the production rates, crown royalty incentives and low operating costs. ''I believe we have discovered what will be one of the largest assets in Tri Link's corporate history. These deep discoveries have provided Tri Link with a significant new dimension and an additional foundation for future growth driven by good quality crude oil.'' Tri Link Resources was founded in 1980 as a private company and went public in 1990. The Company has compiled a record of consistent growth and positive results, generated almost exclusively by identifying quality exploration prospects and turning them into solid economic producing assets.

To: Kerm Yerman who wrote (14018)	12/3/1998 12:20:00 PM
From: Kerm Yerman	Read Replies (16) \| Respond to of 15196

FINANCING / Place Resources Corporation - Special Warrant Financing Closed CALGARY, Dec. 3 /CNW/ - Place Resources Corporation has successfully closed a previously announced bought deal financing of 2.2 million special warrants at an issue price of $3.00 for total gross proceeds of $6.6 million. HSBC James Capel Canada Inc. as lead, and First Marathon Securities Limited acted as underwriters in respect of the financing. Each special warrant entitles the holder, without additional payment and subject to adjustment, to acquire one Place common share from treasury. Place has also arranged to increase its line of credit with the Royal Bank of Canada to $20 million from $15 million. The gross proceeds from the special warrant issue and the increased line of credit will be used primarily to finance Place's development plans at Minehead, Alberta. At Minehead, the previous announced gas well located at 5-20-47-17 W5M is currently being connected to the main ANG pipeline and production is anticipated to commence imminently. Yesterday, Place ran casing on a potential gas well recently drilled at 5-16-47-17 W5M. This well will be tested in the next 10 days and, if successful, will be connected and on production by month-end. Place is also participating with a 33 1/3 % working interest in a horizontal well currently being drilled at 1-7-48-17 W5M, which is operated by Rio Alto Exploration. Results from this well are anticipated by year-end.