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

To: Kerm Yerman who wrote (14218)	12/11/1998 3:59:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Valve Lowered Onto Well Blowout At East Hills December 10, 1998 The Bakersfield Californian Crews from Boots & Coots International Well Control on Thursday placed a new blowout preventer valve on the out-of-control gas well near Lost Hills, marking a milestone in the weeks-long effort to tame the well. The new valve diverted the water, natural gas and oil flowing from the well into two 7-inch pipes, which carried the materials to pits, where the gas will be flared. The well burned furiously for two weeks before it began producing enough water to quench the flames earlier this week. The well was being drilled by a Canadian firm, Bellevue Resources Inc., a subsidiary of Elk Point Resources Inc. of Calgary. Eleven other U.S. and Canadian oil and gas companies also own an interest in the wildcat. Mineral rights for the well are leased from Chevron USA, which will receive a 25 percent royalty for any oil or gas produced. The drilling site is about 11Ú2 miles from the nearest producing oil field and about two miles west of Interstate 5.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:23:00 PM
From: Kerm Yerman	Respond to of 15196

AGREEMENT / Tracer Petroleum Announces Middle East Agreement VANCOUVER, Dec. 11 /PRNewswire/ -- Tracer Petroleum Corporation (Nasdaq: TCXXF) (Vancouver: TPC) reports that efforts to seek geographic diversity in their international portfolio of projects have been advanced by the formalization of a consortium to pursue the acquisition of oil and gas interests in the Islamic Republic of Iran. As part of the governing agreement, a new subsidiary company is to be established as a joint venture between Tracer and a group possessing long term working relationships with relevant authorities in Iran as a prerequisite to the joint venture obtaining entry to a select number of projects in that country. Mr. William T. Mullins of London, England will be appointed as the President and a Director of the new subsidiary. Mr. Mullins has previously held senior positions with Citibank, London, and Credit Suisse First Boston, with responsibility for projects in the Middle East, and he was formerly Executive Director of London Stock Exchange-listed Dragon Oil plc from 1992 to 1996. Mr. Mullins will be spearheading the pursuit of the project interests in Iran. This release contains ''forward-looking statements'' as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Management is currently reviewing many options and there is no assurance that final decisions made will be as indicated. The Company is subject to political risks and operational risks identified in documents filed with the Securities and Exchange Commission, including changing and depressed oil prices, unsuccessful drilling results, change of government and political unrest in its main area of operations. PRIOR RELEASES Tracer Executes Agreement for Producing Block in Indonesia VANCOUVER, British Columbia, Dec. 9 /PRNewswire/ -- TRACER PETROLEUM CORPORATION (Nasdaq: TCXXF; Vancouver: TPC) announces that it has executed an agreement to acquire a minimum 80% interest in the Sungai Gelam A, B, & D Technical Assistance Contract (''TAC'') located in South Sumatra in the Republic of Indonesia The TAC covers an established but still underdeveloped field divided into three fault blocks on two structures which have produced some 230,000 barrels from the Air Benekat Formation since initial drilling in 1958. There are a total of six wells on the contact area with one well currently producing an estimated 44 barrels of light, low paraffinic oil per day. No modern technology has been applied to the field and no significant activity has been undertaken by Pertamina since the late 197Os or the vendors who were granted the 20-year TAC by Pertamina in May 1997. The field is adjacent to the Kenali Asam Field which has produced over 90 million barrels to date from the Air Benekat. Proven recoverable reserves are estimated at 400,000 barrels with probable and possible reserves of up to 40 million barrels recoverable. The deeper, highly prolific Talang Akar Formation (the major producing sandstone in the Company's Ogan Komering block) has not been fully evaluated, but tested hydrocarbons in the one well which penetrated this zone. Also, one major fault block between the adjacent productive blocks and high to these blocks has not been drilled to date. Terms of the acquisition include: 1. A deferred note in the amount of US $1,000,000 payable without interest in two years. 2. An agreement to pay the vendor an additional amount equal to $1.00 per barrel of proved reserves in excess of 2 million barrels as established by independent consulting engineers, which study will be undertaken in two years. A note for this amount will be executed by Tracer at the conclusion of the study and be payable over an additional two years in equal installments to include interest at LIBOR. 3. A commitment to complete a minimum work program equal to US $2.0 million over a 24 month period commencing after the transfer has been approved by all necessary authorities. 4. A finder's fee of 125,000 shares of the Company is payable upon final approval of the transfer of operatorship by Pertamina and appropriate regulatory authorities. The agreement is subject to various conditions which must be satisfied prior to the expenditure of any funds by Tracer. The Company has completed a preliminary due diligence, and a preliminary Work Program has been prepared. Detailed due diligence will commence early in January 1999 with critical liability understandings to be verified by the vendor's financial institution by January 15, 1999. There is no cash to be paid up front for the acquisition as all parties appreciate the importance of having work completed on the block to prove value and achieve efficient production at an early date. Tracer Announces Third Quarter Results and Update on Corporate Activities (all funds in Cdn. $ unless otherwise stated) VANCOUVER, British Columbia, Nov. 30 /PRNewswire/ -- TRACER PETROLEUM CORPORATION (Nasdaq: TCXXF; TCXWF;) announces the results of operations for the period ending September 30, 1998. Net loss for the nine months ended September 30 was $9,624,951 or $2.59 per share (1997-net profit of $224,841 or $0.06 per share). This loss is primarily due to a write-down of $6,649,665 after a depletion allowance totaling $2,586,359 (1997-$300,000) for the North Tanjung Block (''NTB'') in Indonesia. The write down results from a ceiling test determination recognizing limitations on financing further exploration. Before write-down and depletion and amortization the Company would have reported a net profit of $51,673 or $0.00 per share. Revenue from oil and gas operations decreased to $1,531,418 (1997 - $2,542,622) reflecting significantly lower oil prices realized during the period compared to 1997, and a difference of $180,574 which represented the revenue in 1997 from Canadian properties which were sold. Gross production from the Company's 4.25% interest in the Ogan Komering Block (''OK Block'') continues at over 16,000 barrels per day; however, revenue per barrel has fallen below US $12.00 resulting in lower amounts attributed to our interest. A copy of the full quarterly report is available from the Company or may be viewed on Tracer's web site. Operationally, between July 25 and August 25 of this year, the Company drilled and tested an appraisal well, Ngurit #2, on the Ngurit gas discovery in the NTB. Although structural closure and reservoir extent were confirmed, the target sands which logged as gas bearing were of insufficient quality to warrant the completion of the well. Proposals to utilize the existing gas discovered in Ngurit are being negatively impacted by conditions related to US dollar economics and power market factors. In the meantime, potential partners are being actively canvassed to determine support for drilling a third well on the Ngurit structure to test a possible associated oil column. In mid-November the Company received notification from NASDAQ that the bid price for its common shares has failed to meet the minimum continued listing requirement of US $1.00 for over 30 days. As a result, Tracer has been granted until Feb. 11, 1999 to achieve this minimum bid price for 10 consecutive days failing which our shares will be subject to delisting from the NASDAQ Small Cap Market. Although management views this situation seriously, the Company believe alternatives currently being considered will be viewed positively by investors and the minimum price requirements will be satisfied well within the granted grace period. The Company's warrants that were trading under the symbol ''TCXWF'' on the NASDAQ Small Cap Market were delisted in November due to the lack of sufficient market makers. The Company is taking steps to have the warrants accepted for trading on the OTC ''Bulletin Board''. Management is strongly of the opinion that the Company must move forward with the acquisition of a revenue producing property. Our discussions in Indonesia have centered on negotiations with a major bank as disclosed in previous news releases. These negotiations have been intensive, if somewhat sporadic due to political developments in the country and demands on the bank from central bank authorities and IMF inspectors. Management has emphasized to the bank negotiators that closure on the first project is required without further delay. Bank officials are currently meeting with Tracer's CFO and President in an attempt to bring the negotiations to a final conclusion. The Company is aware of the increased business risks, both real and perceived, in Indonesia. Tracer believes it must diversify into other areas of the world in order to reduce risks associated with a single geographic focus. Accordingly, during the third quarter, the Company undertook the review of a number of potential projects located in North America and most recently the Middle East. The Board has given conditional approval to advance with a project structure that is anticipated to give Tracer a selection of significant development opportunities in the Middle East. The Company will provide additional information as documentation proceeds. Following discussions with the BC Securities Commission, the Company has changed its method of accounting to Generally Accepted Accounted Principles (''GAAP'') in Canada from the previous practice of utilizing US GAAP in all financial reports. The effect of this change is noted in the quarterly financial statements. In addition, the Company has prepared revised Audited Consolidated Financial Statements for the year ended December 31, 1997 in accordance with Canadian GAAP which statements together with the Auditor's Report thereon may be viewed on our web site or received from our Vancouver office.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:39:00 PM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

MERGERS - ACQUISITIONS / Blue Range Resources - No Alternative Transaction Blue Range Announces Completion of Discussions CALGARY, Dec. 10 /CNW/ - Blue Range Resource Corporation announced today that it has completed discussions with all prospective parties to an alternative transaction to the take-over bid made on November 13 by Big Bear Exploration Ltd. for the shares of Blue Range. Although Blue Range's board of directors and financial advisors obtained several alternative proposals, none of the proposals were satisfactory and all were rejected. Blue Range has now released all prospective parties from the standstill'' restrictions contained in the confidentiality agreements entered into by those parties. In commenting on the efforts to find an alternative transaction, Keith Farries, Chairman of the Blue Range Special Committee of Directors, said The Company's board of directors and advisors took all reasonable steps to fulfill the board's mandate to obtain a transaction offering higher value to shareholders. Unfortunately, in light of current commodity prices and market conditions, an acceptable alternative transaction did not materialize.'' Blue Range's board of directors withdraws its prior rejection of the Big Bear bid and is making no recommendation in respect of the Big Bear bid. If the Big Bear bid is successful, the board of directors and senior management of Blue Range will cooperate with Big Bear to facilitate an orderly transition to maximize shareholder value. 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.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:45:00 PM
From: Kerm Yerman	Respond to of 15196

MERGERS - ACQUISITIONS / Big Bear Exploration Ltd. Completes Blue Range Acquisition Big Bear Exploration Ltd. Completes Blue Range Acquisition CALGARY, ALBERTA-- Big Bear Exploration Ltd. announced today that it has received indications from at least 65 percent of the shareholders of Blue Range Resource Corporation that they have or are in the process of tendering their stock to Big Bear pursuant to its take-over bid which expires at 11:59 pm Calgary time on Friday, December 11, 1998. Jeff Tonken, Chairman & Chief Executive Officer of Big Bear said "As a result of our meeting with the Blue Range Board of Directorslate this afternoon, we understand that no other acceptable proposals were received. We have been advised that the directors and officers will be tendering their shares to our bid. I encourage Blue Range shareholders to tender their common shares inacceptance of Big Bear's Offer prior to the expiry time." "I am very impressed that not withstanding the adversarial nature of the acquisition process, Blue Range's Board of Directors and Senior Management have behaved professionally and have offered to assist and co-operate in ensuring a smooth transition. As a smallcompany Big Bear expects to continue employment of all Blue Range employees and we are looking forward to working with them to buildshareholder value for Big Bear's shareholders." Big Bear intends to take up all shares of Blue Range which are tendered prior to the expiry time and promptly thereafter issue Big Bear shares to those Blue Range shareholders. Big Bear has offered to acquire all the issued and outstanding shares of Blue Range on the basis of 11 shares of Big Bear for each share of Blue Range. Big Bear's financial advisors are Griffiths McBurney & Partners and Maison Placements Canada Inc. Big Bear Exploration Ltd. is a Calgary based oil and gas company listed on The Toronto Stock Exchange under the symbol "BDX".

To: Kerm Yerman who wrote (14218)	12/11/1998 4:51:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Precision Drilling Second Quarter Results 1999 Six Months Ended October 31, 1998 CALGARY, Dec. 11 /CNW/ - Precision Drilling Corporation reports their financial results for the second quarter ended October 31, 1998, as follows: FINANCIAL CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS CDN $000's, except per Three Months Ended Six Months Ended share amounts October 31 October 31 (unaudited) 1998 1997 1998 1997 ------------------------------------------------------------------------- Revenue 170,003 255,433 350,139 478,820 Expenses: Operating 112,111 151,932 232,592 297,165 General and administrative 14,442 12,852 27,346 25,636 Depreciation and amortization 17,850 19,930 36,198 36,694 ------------------------------------------------------------------------- 144,403 184,714 296,136 359,495 ------------------------------------------------------------------------- Operating earnings 25,600 70,719 54,003 119,325 Interest (5,355) (4,621) (9,800) (8,014) Dividend income - - - 1,923 Gain on disposal of investment - - 9,705 - ------------------------------------------------------------------------- Earnings before income taxes 20,245 66,098 53,908 113,234 Income taxes Current 24,022 (2,302) 32,619 19,477 Deferred (12,951) 37,019 (10,118) 38,225 ------------------------------------------------------------------------- 11,071 34,717 22,501 57,702 ------------------------------------------------------------------------- Net earnings 9,174 31,381 31,407 55,532 Retained earnings, beginning of period 229,152 121,295 206,919 97,358 Dividends on preferred shares - (61) - (275) ------------------------------------------------------------------------- Retained earnings, end of period 238,326 152,615 238,326 152,615 ------------------------------------------------------------------------- Earnings per share Basic 0.22 0.75 0.75 1.34 Fully diluted 0.22 0.70 0.72 1.25 ------------------------------------------------------------------------- Weighted average shares outstanding (thousands) Basic 42,005 40,730 Fully diluted 45,323 44,556 ------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS CDN $000's (unaudited) October 31 ------------------------------------------------------------------------- 1998 1997 Assets Current assets: Cash 2,692 1,861 Accounts receivable 156,212 257,222 Inventory 40,336 26,966 ------------------------------------------------------------------------- 199,240 286,049 Property, plant and equipment, at cost less accumulated depreciation 750,161 616,960 Goodwill, net of accumulated amortization of $21,967; 1997 - $9,034 285,530 216,304 Investments 44,262 43,530 Deferred financing costs, net of amortization of $1,508; 1997 - $377 9,412 10,543 ------------------------------------------------------------------------- 1,288,605 1,173,386 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current Liabilities: Bank indebtedness 7,058 52,300 Accounts payable and accrued liabilities 90,704 116,137 Income taxes payable 20,503 12,920 Current portion of long-term debt 24,618 27,484 ------------------------------------------------------------------------- 142,883 208,841 Long-term debt 270,712 228,252 Deferred income taxes 132,200 84,482 Shareholders' equity: Share capital 504,484 499,196 Retained earnings 238,326 152,615 ------------------------------------------------------------------------- 742,810 651,811 ------------------------------------------------------------------------- 1,288,605 1,173,386 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SEGMENT INFORMATION CDN $000's Three Months Ended October 31 Contract Oilfield Rental and Drilling Specialty Production Services Services Services Total ------------------------------------------------------------------------- 1998 Revenue 70,360 25,862 73,781 170,003 Operating earnings 10,933 2,181 12,486 25,600 Depreciation and amortization 8,319 3,207 6,324 17,850 Assets 769,604 197,193 321,808 1,288,605 Capital expenditures(x) 16,447 3,334 13,197 32,978 ------------------------------------------------------------------------- 1997 Revenue 171,380 15,361 68,692 255,433 Operating earnings 53,676 2,883 14,160 70,719 Depreciation and amortization 12,697 1,267 5,966 19,930 Assets 799,890 52,533 320,963 1,173,386 Capital expenditures(x) 25,401 3,366 9,457 38,224 ------------------------------------------------------------------------- Six Months Ended October 31 Contract Oilfield Rental and Drilling Specialty Production Services Services Services Total ------------------------------------------------------------------------- 1998 Revenue 157,637 49,264 143,238 350,139 Operating earnings 23,356 3,898 26,749 54,003 Depreciation and amortization 18,105 5,756 12,337 36,198 Assets 769,604 197,193 321,808 1,288,605 Capital expenditures(x) 28,652 9,305 22,563 60,520 ------------------------------------------------------------------------- 1997 Revenue 314,771 27,960 136,089 478,820 Operating earnings 84,209 4,732 30,384 119,325 Depreciation and amortization 23,861 2,421 10,412 36,694 Assets 799,890 52,533 320,963 1,173,386 Capital expenditures(x) 57,770 5,031 12,992 75,793 ------------------------------------------------------------------------- (x)excludes acquisitions OPERATING Six Months Ended October 31 1998 1997 Market Market Precision Industry Share % Precision Industry Share % Number of drilling rigs 214 577 37 203 528 38 Number of operating days (Spud to release) 11,847 34,659 34 25,672 63,836 40 Wells drilled 1,150 4,160 28 3,300 8,685 38 Metres drilled (000's) 1,592 5,012 32 3,999 9,792 41 Rig utilization rate (%) 30 33 70 71 Precision Drilling Corporation is listed on The Toronto Stock Exchange under the ticker symbol PD and on the New York Stock Exchange under the ticker symbol PDS.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:53:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / International Datashare Corporate Update CALGARY, ALBERTA--The Company announces that it is unaware of any corporate developments which would cause the recent decline in the share price.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:57:00 PM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Scorpion Energy Retains Financial Advisor CALGARY, ALBERTA--SCORPION ENERGY CORPORATION has retained Griffiths McBurney & Partners as Financial Advisor to identify financing opportunities to ensure the continued growth of the Company. Griffiths McBurney & Partners will also assist Scorpion in broadening its shareholder base in both Canada and the USA. Current Board members, B.J. Seaman and Ernie Toews, have been elected as co-chairmen of the Company. Scorpion is a junior oil and gas company with production and drilling prospects in Alberta and British Columbia. Production iscurrently 1,200 BOE/d, 80 percent of which is gas and natural gas liquids. The Company is currently working on facilities and drilling two wells that could result in the Company exiting the year at significantly higher production volumes. Scorpion Energy Corporation shares trade on the Toronto Stock Exchange under the symbol SEN.

To: Kerm Yerman who wrote (14218)	12/11/1998 4:59:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / TriGas Exploration Announces Flow-Through Share Issue CALGARY, Dec. 11 /CNW/ - TriGas Exploration Inc. announced that it has entered into an agreement for the issuance of 1.5 million flow-through common shares at $1.35 per share. The flow-through common shares will be issued through Griffiths McBurney & Partners on a bought deal basis. Proceeds of the issuance will be used to fund exploration expenditures and TriGas will renounce to subscribers Canadian exploration expenses equal to the subscription amount for the shares. Closing of this issue is subject to customary regulatory approval and is anticipated to occur within two weeks. TriGas Exploration Inc. currently has 32.3 million common shares outstanding. Proceeds will be used to fund exploration and development activities on the company's core properties at Irricana and Lone Pine, Alberta. The common shares of TriGas are listed on The Toronto Stock Exchange under the symbol ''TGX''.

To: Kerm Yerman who wrote (14218)	12/11/1998 5:02:00 PM
From: Kerm Yerman	Respond to of 15196

AGREEMENT / Pyramid Energy Executes Farmin Deals CALGARY, Dec. 11 /CNW/ - Pyramid Energy Inc. announces the signing of three farmin deals with a private Alberta company. In North Central Alberta, a well is licensed to be drilled prior to year end to test the Devonian section including the Leduc formation. Pyramid will earn an interest in 15 sections of land through its participation in the well and will have the right to participate as to its earned interest in future drilling activities in an extensive Area of Mutual Interest ''AMI'' associated with the earned acreage. In the Nipisi area, Pyramid will participate in the re-entry of well 1-1-79-9 W5 to test the Gilwood ''A'' sand and will earn an interest in five sections of land and the right to participate in future drilling activities in a 10 section block. Should the 1-1 well re-entry prove successful, a second well will be drilled in 7-6-79-8 W5 prior to February 17, 1999. In the Mitsue area, Pyramid will participate in the drilling of well 12-25-73-5 W5 to earn an interest in one 160 acre block and the option to earn an interest in an additional 480 acres. The well is scheduled to be drilled in January, 1999 and is expected to test the Gilwood sands. The above transactions provide Pyramid with a significant land position in several key areas in Alberta including a very large AMI in a relatively unexplored area. Successful drilling in the above locations could potentially lead to a large development program which in turn would add significantly to Pyramid's daily production and light oil reserves.

To: Kerm Yerman who wrote (14218)	12/11/1998 5:05:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Primewest Energy offering to purchase Starcor and Orion CALGARY, Dec. 11 /CNW/ - Kent J. MacIntyre, the Vice Chairman and Chief Executive Officer of PrimeWest Energy Inc., announced today that PrimeWest Energy Trust is making an offer to purchase all of the outstanding trust units of each of Starcor Energy Royalty Fund and Orion Energy Trust. Under the terms of the offers, PrimeWest will issue 1.207 PrimeWest units for each Starcor unit, and 0.968 PrimeWest units for each Orion unit. The closing prices of the PrimeWest units, Starcor units and Orion units on The Toronto Stock Exchange on December 10, 1998 were $5.05, $5.30 and $4.25, respectively. Based on those prices, PrimeWest's offers represent a premium of 15% to the holders of Starcor units and 15% to the holders of Orion units. There are approximately 9.2 million Starcor units and 14.1 million Orion units outstanding. Based on publicly available information as of the close of business on December 10, 1998, the approximate transaction values of the offers are $95 million in the case of Starcor, and $105 million in the case of Orion. PrimeWest has acquired, through open market purchases, 431,700 Orion Units, representing approximately 3.1% of Orion's outstanding units, and 172,400 Starcor Units, representing approximately 1.9% of Starcor's outstanding units. Upon completion of the offers, PrimeWest intends to combine the operations of each of Orion and Starcor with those of PrimeWest. In addition to the premium offered under each of the offers, the offers permit the unitholders of Orion and Starcor to share in the many benefits which will accrue to the unitholders of the entity resulting from the combination of PrimeWest, Orion and Starcor. Those benefits include: (a) Increased Distributions: PrimeWest believes, based on publicly available information, that the combination of each of Orion and Starcor, both individually and together, with PrimeWest will lead to incremental distributions on the combined entity's units, due, in part, to the following: (i) the PrimeWest Manager has agreed to reduce its management fee in accordance with the following: (A) in the event the combination of PrimeWest and one of either Orion or Starcor is concluded, the cash component of the management fee will be reduced from 2.5% of the net production revenue of the combined entity to 2.0% of the net production revenue of the combined entity; and (B) in the event the combination of PrimeWest, Orion and Starcor is concluded, the cash component of the management fee will be reduced from 2.5% of the net production revenue of the resulting combined entity to 1.75% of the net production revenue of the combined entity. (ii) the elimination of duplicative general and administrative expenses. (iii) the realization of certain identified operational synergies resulting from certain of Starcor's and a significant portion of Orion's properties being geographically offset by PrimeWest's. (b) More Effective Exploitation of Development Opportunities: PrimeWest believes that producers who operate their properties are better able to control costs and maximize value from their properties. Accordingly, PrimeWest, to the extent possible, operates its properties. To operate its properties, PrimeWest has assembled a highly qualified team of oil and gas professionals with a proven track record of maximizing the value extracted from its properties. PrimeWest has one of the lowest per barrel finding and development costs and reserve replacement costs of all conventional oil and gas royalty trusts. PrimeWest believes that, as a result of the expertise of its oil and gas professionals, it has the ability to more effectively exploit, and extract the maximum value from, the currently producing properties and development opportunities provided by the undeveloped and under-exploited properties of both Orion and Starcor than could their current manager. This will operate to the benefit of all holders of the combined entity's units. (c) Diversified Assets: The combination of each of Orion and Starcor with PrimeWest will result in a diversification of the combined asset base of the combined entity compared to the asset bases held separately by PrimeWest, Orion and Starcor. The diversification provided by an increase in the number of core properties held by the combined entity will have the result of reducing the significance of any one property, and thereby reduce operational risk. (d) Increased Liquidity and Access to Capital: PrimeWest believes that the increased market capitalization of the combined entity will result in: (i) enhanced liquidity for the combined entity's units, resulting in a lowering of the yield applicable to such units, and thereby increasing the market value for the combined entity's units; and (ii) an enhanced ability for the combined entity to access necessary capital through the public markets at a reasonable cost, thereby permitting the combined entity to more effectively continue to both enhance its reserve base through development activities and undertake acquisitions to replace its production. ''The combination of PrimeWest, Starcor and Orion will result in one of Canada's largest energy royalty trusts, with an enterprise value (including debt) of approximately $455 million (based upon publicly available information and unit trading prices at the close of business on December 10, 1998)'', stated Mr. MacIntyre. ''We expect to realize significant cost savings by reducing general and administrative overlap. We also see a number of operational efficiencies and other production enhancing activities that we can implement on Starcor's and Orion's properties.'' Mr. MacIntyre added, ''PrimeWest first met with one of Orion's and Starcor's management directors in June of this year to discuss the possibility of combining PrimeWest, Orion and Starcor. Based on what we perceived was a willingness to investigate a possible combination on the part of Orion's and Starcor's management, we, together with our Chairman, Harold P. Milavsky, participated in a further meeting to explore the possibility of such a combination with one of Orion's and Starcor's management directors in July. Following the July meeting, PrimeWest commenced a detailed analysis of the benefits which would accrue to unitholders from a combination of PrimeWest, Orion and Starcor. These benefits were presented and discussed at a subsequent meeting with Orion's and Starcor's two management directors in October. While Orion's and Starcor's management indicated at the October meeting that it was their preference to remain independent for the present, PrimeWest believes that the potential benefits to unitholders resulting from a combination of the three trusts is compelling enough that the combination should be referred to unitholders for their decision. Accordingly, PrimeWest has proceeded with the offers based on publicly available information and without the initial support of Orion and Starcor management. PrimeWest intends to resume discussions with Orion and Starcor representatives later today and it is our desire to reach a combination agreement on or before December 21, 1998.'' Harold P. Milavsky, Chairman of the Board of PrimeWest Energy Inc., said, ''We have a strong preference for (and believe that it would be in our respective unitholders' best interests to enter into) a transaction that is acceptable to and approved by each of Orion's and Starcor's independent directors and, if possible, also by their management. While we have had a number of discussions with Orion's and Starcor's management directors, we have not yet had any substantive discussions with either Orion's or Starcor's independent directors. With that in mind, we are prepared to commence negotiations with each of Orion's and Starcor's independent directors, at their convenience, towards entering into a definitive combination agreement on mutually acceptable terms and conditions. We are also prepared to commence negotiations with the manager of both Orion and Starcor, at its convenience, towards entering into a definitive bid support agreement on mutually acceptable terms and conditions.'' PrimeWest will today be requesting unitholder lists from Starcor and Orion and anticipates mailing the offers as soon as it receives those lists. The offers will be open for acceptance for 22 days after mailing and will be subject to the satisfaction of certain conditions, including the deposit of at least two-thirds of the Starcor units and the Orion units under the respective offers, the removal of Orion's and Starcor's unitholder rights plans and the receipt of all necessary regulatory approvals, including those under the Competition Act. These, together with other conditions of the offers, will be more fully set out in the offers to be mailed to unitholders of Starcor and Orion. Neither of the offers will be conditional on the success of the other. Mr. Milavsky added, ''Holders of Starcor units and Orion units have an opportunity to realize an attractive premium to current trading prices and to continue to participate and grow with PrimeWest going forward. We expect that at the appropriate time, Orion's and Starcor's independent directors will waive the application of their recently adopted ''poison pills'' and allow holders of Starcor units and Orion units the ability to consider the offers on their merits and accept the offers, without any impediment.'' ''A 22 day offering period was determined to be appropriate given the prior discussions which have taken place between PrimeWest management and directors of the Starcor and Orion operating companies, and the anticipated period required to secure the unitholders lists'' stated Mr. MacIntyre. CIBC Wood Gundy Securities Inc., which is serving as financial advisor to PrimeWest in these transactions, will also act as the soliciting dealer manager for the offers. A conference call with PrimeWest to review the offers will occur at 8:00 a.m. (Calgary time) Friday, December 11, 1998. To participate, call 1 800 735 3051 and reference reservation number No. 7118. Each of PrimeWest, Starcor and Orion are open-ended mutual fund trusts. PrimeWest's trust units are traded on The Toronto Stock Exchange under the symbol ''PWI.UN''. Certain statements in this news release are forward-looking. Such forward-looking statements regard PrimeWest's future performance and involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Risk factors are listed from time to time in PrimeWest's public disclosure documents filed with The Toronto Stock Exchange and provincial securities commissions. PrimeWest assumes no obligation to update information contained in this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The trust units of PrimeWest offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. PRIMEWEST ENERGY TRUST NOTICE OF INVESTMENT COMMUNITY CONFERENCE CALL Friday, December 11, 1998 8:00 a.m. Calgary Time (10:00 a.m. Toronto Time) Conference Call No.: 1 800 735 3051 Please call 10 minutes prior to the start of the call. PrimeWest will hold a conference call this morning regarding its announcement that it is offering to purchase all of the outstanding trust units of Starcor Energy Royalty Fund and Orion Energy Trust. The conference call will include Harold Milavsky, Chairman of PrimeWest Energy Inc., Kent MacIntyre, Vice Chairman and Chief Executive Officer, Susan Duncan, Vice President, Finance and Ron Ambrozy, Vice President, Business Development.

To: Kerm Yerman who wrote (14218)	12/11/1998 5:08:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / Nycan Energy Corp. Flow-Through Offering NYCAN RAISES $1,550,000 VIA FLOW-THROUGH SHARE ISSUE CALGARY, ALBERTA-- Nycan Energy Corp. is pleased to announce that it has agreed, subject to regulatory approvals, to issue by way of a private placement 2,297,222 flow-through common shares at a price of $0.675 per share. The shares are to be issued primarily to the senior officers and directors of the company. As a result of this issue, Nycan's total liabilities will be reduced to $600,000 and debt to estimated 1998 cash flow will be reduced to less than half a year. The proceeds of the private placement will provide $1,550,000 in working capital which will enable Nycan to continue with an active exploration and development program during a period of lowered industry competition. This capital injection will fund the drilling and completion of wells on natural gas prospects at Turin, Retlaw and Alderson, Alberta.