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

To: Kerm Yerman who wrote (14236)	12/12/1998 1:09:00 AM
From: Kerm Yerman	Respond to of 15196

PIPELINES / PG&E Energy Trading - Canada to Take 50 percent Capacity on Southern Crossing Pipeline PG&E ENERGY TRADING NYSE SYMBOL: PCG DECEMBER 11, 1998 CALGARY, ALBERTA-- EDITORS: Please do not use "Pacific Gas and Electric" or "PG&E" when referring to PG&E Energy Trading - Canada, PG&E Energy Trading or PG&E Gas Transmission. PG&E Energy Trading - Canada, PG&E Energy Trading and PG&E Gas Transmission are not the same company as Pacific Gas and Electric Company, the utility. PG&E Energy Trading - Canada, PG&E Energy Trading and PG&E Gas Transmission are not regulated by the California Public Utilities Commission; and customers do not have to buy PG&E Energy Trading - Canada, PG&E Energy Trading or PG&E Gas Transmission products or services in order to continue to receive quality regulated services from Pacific Gas and Electric Company, the utility. Trading, Canada Corporation (PG&E Energy Trading - Canada), a subsidiary of PG&E Energy Trading - Gas Corporation (PG&E Energy Trading) and PG&E Corporation (PG&E Corp.) today announced agreements with BC Gas for capacity on the BC Gas Southern Crossing Pipeline project and for the provision of peaking services to BC Gas, pending customary approvals. The Southern Crossing Pipeline is a 312-kilometer loop of an existing BC Gas pipeline from Yahk to Oliver, B.C. linked to the north-south Westcoast Energy pipeline connecting to the Lower Mainland of B.C. and the Pacific Northwest of the U.S. The pipeline project which will link Alberta gas to the Huntingdon, B.C. market area is scheduled to start operation Nov. 1, 2000. PG&E Energy Trading - Canada's agreement calls for the company to take 50 percent of the project's capacity to Huntingdon for a period of ten years. BC Gas has announced that BC Hydro will hold the other 50 percent capacity to Huntingdon. The pipeline will also provide capacity to utility customers in the interior of British Columbia. Keith Bohn, senior vice president, PG&E Energy Trading - Canada noted that the pipeline is of strategic importance to the company as it increases its presence in Western Canada and the Pacific Northwest states. "We expect to expand our end-use customer base and to encourage development in the region by diversifying load to meet customer needs," said Bohn. "We look forward to working closely with BC Gas to develop other strategic opportunities," Bohn added. PG&E Energy Trading executive vice president and chief operating officer, Michael Flinn said that the deal is integral to PG&E Corporation's North America energy strategy. "We see a seamless energy network across North America. With the convergence of natural gas and power, agreements like this set the stage for further integration," he said. PG&E Energy Trading, headquartered in Houston, Texas, is one of the largest energy marketers in North America, providing wholesale power, natural gas and price risk management products to industrial and utility customers. PG&E Energy Trading - Canada, with offices in Calgary and Saskatoon is one of the largest traders of natural gas in Canada. PG&E Corporation is an energy-based holding company headquartered in San Francisco, Calif. PG&E Corporation also owns PG&E Gas Transmission - Northwest, which owns and operates a 985-kilometer dual pipeline system with the ability to transport 2.7 billion cubic feet of natural gas per day in the Pacific Northwest.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:18:00 AM
From: Kerm Yerman	Respond to of 15196

FUNDS - MISC. / Bonavista Petroleum And Maxx Petroleum Shares Purchased by Canada Dominion Resources Limited Partnership CANADA DOMINION RESOURCES LP NOW FULLY INVESTED Date: 12/11/98 5:52:25 PM Dateline: VANCOUVER, BRITISH COLUMBIA Stock Symbol: Canada Dominion Resources Limited Partnership (the "Partnership") is pleased to announce the acquisition of flow-through shares in three additional resource issuers, finalizing the Partnership's investments. Investments are as follows: Issuer Symbol Number Of Price Investment Shares Per Share Amount Purchases MAXX Petroleum TSE:MXP 130,000 $4.10 $533,000 Claude Resources Inc. TSE:CRJ 303,030 $1.65 $500,000 Bonavista Petroleum Ltd. TSE:BNP 27,600 $8.90 $245,640 ---------- Total Investment $1,278,640 ---------- MAXX Petroleum and Bonavista Petroleum are in the oil and gas sector while Claude Resources is a gold producer. Tuscarora Capital Inc., the Partnership's Investment Advisor, advises that in total $16,813,041 were invested on behalf of the Partnership in resources issuers, primarily in the oil and gas sector with a bias to gas producers. A complete list of the investments may be viewed on Canada Dominion's website, canadadominion.com. CANADA DOMINION RESOURCES LIMITED PARTNERSHIP By: Canada Dominion Resources Corporation General Partner

To: Kerm Yerman who wrote (14236)	12/12/1998 1:21:00 AM
From: Kerm Yerman	Respond to of 15196

FUNDS - MISC. / Richland Petroleum Shares Purchased By State Street Research & Management Company TORONTO, Dec. 11 /CNW/ - State Street Research & Management Company, an Investment Adviser registered under the U.S. Investment Advisers Act of 1940, has acquired, in transactions on The Toronto Stock Exchange, control or direction over 1,850,000 shares (14.92% of the outstanding shares) of Richland Petroleum Corp. The shares are beneficially owned for investment purposes by clients of State Street Research, which disclaims any beneficial ownership. State Street Research may from time to time purchase additional shares or sell shares, on behalf of its clients, depending on prevailing economic and market conditions.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:27:00 AM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Forest Oil Corporation announced its board of directors has approved an initial capital budget for 1999 of $60 Mil FOREST OIL CORPORATION ANNOUNCES 1999 CAPITAL BUDGET 12/11/98 5:35:51 PM DENVER, COLORADO Stock Symbol: FST This compares to an estimate of $125 million of capital expenditures in 1998, exclusive of acquisitions, and is significantly below the company's anticipated cash flow in 1999. The company believes this capital budget to be sufficient to result in production growth in both 1999 and the year 2000. Expenditures are being directed toward projects that provide near-term returns in a low hydrocarbon price environment, toward committed projects and toward a reduced number of high potential exploration projects primarily in the northern part of Canada. Robert S. Boswell, Chief Executive Officer, stated, "Volatility and the current level of hydrocarbon prices compel the company to use an abundance of caution with respect to capital expenditures in 1999. While we believe the underlying longer-term secular trends for hydrocarbon pricing are quite positive, we intend to maximize our near-term financial flexibility and manage our capital conservatively until market conditions improve. Further, the decline in industry activity has lowered costs in general and we are able to accomplish more today with fewer dollars than we have in the past several years. The initial capital budget we have established for 1999 exposes Forest to an array of both lower risk production growth projects and higher risk impact opportunities while providing the company sufficient financial flexibility to pursue opportunistic situations which might arise. We feel very positive about the position of the company going into 1999 despite lower oil and gas prices and are enthused about the potential of our capital plan." This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that expected results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks and other risk factors as described in the company's 1997 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Forest Oil Corporation is engaged in the acquisition, exploration, development, production, and marketing of natural gas and crude oil in North America. Forest's principal reserves and producing properties are located in the United States in the Gulf of Mexico, Louisiana, Texas, Oklahoma and Wyoming and in Canada in Alberta and the Northwest Territories. Forest's common stock trades on the New York Stock Exchange under the symbol FST.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:32:00 AM
From: Kerm Yerman	Respond to of 15196

AGREEMENT / Union Pacific Resources Group Inc. - Brazil Operations UNION PACIFIC RESOURES GROUP INC. TO OPERATE PRODUCTION, DRILL DEVELOPMENT WELLS IN PARTNERSHIP WITH BRAZIL'S PETROBRAS Date: 12/11/98 5:25:45 PM Dateline: FORT WORTH, TEXAS Stock Symbol: UPR Union Pacific Resources Group Inc. (NYSE:UPR) today announced that it expects to sign agreements Monday with the Brazilian oil company, Petroleo Brasileiro S.A. (PETROBRAS) to develop a section of Brazil's Sergipe Alagoas basin and operate the one producing oil well in the area. With the scheduled Monday signing of Participation and Joint Operating Agreements and a Consortium Contract, PETROBRAS will assign to UPR and its partner TDC Engineering Inc. a concession for a 7,767-acre area known as Project 2003-Area SES 107D, which has only one currently producing well. "We are extremely pleased to be entering into what we hope will be a long and mutually beneficial relationship with PETROBRAS in Brazil," UPR chairman and CEO Jack Messman said. "There is great potential in Brazil for the field development and reactivation projects that are core competencies for UPR. Our expansion into Brazil, added to our existing operations in Guatemala, Venezuela and Argentina, make Latin America and its relatively low-cost exploration and development opportunities an increasingly attractive and important business area for UPR." Under the terms of the agreements ready for signing, the Company will take over operation of the SES 107D well currently producing from the Penedo formation, making UPR the first foreign oil company to operate production in Brazil since the country opened exploration and production ventures to foreign investors about two years ago. The well, with estimated ultimate reserves of 1.1 million barrels of oil, has produced a total of 356,000 barrels of oil to date. UPR, as operator, and TDC Engineering of Abilene, Texas, have agreed to conduct a 32-square kilometer seismic survey and to drill two test wells. Under the terms of the 27-year royalty-and-tax contract and agreements, UPR holds a 67.5 percent share, PETROBRAS 25 percent and TDC 7.5 percent. The agreements are subject to approval by the Brazilian regulatory agency, Agencia Nacional de Petroleo. UPR expects to begin work early in 1999. "We like the block (Area SES 107D) because of its potential," George Lindahl III, UPR president and chief operating officer, said before leaving the U.S. for a signing ceremony at PETROBRAS headquarters in Rio de Janeiro Monday. "We think we can drill as many as 18 development wells on this project. Our plan is to show PETROBRAS our technical and operating capabilities. We hope this leads to further joint ventures with PETROBRAS in Brazil." Union Pacific Resources is one of the nation's largest independent oil and gas exploration and production companies. Based in Fort Worth, Texas, UPR has been the No. 1 domestic driller for the past six years and is the No. 1 gas producer in the state of Texas. This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties including planned construction and drilling activity, expected production efforts and volumes and budgeted capital expenditures and other risks and uncertainties detailed in the Company's SEC reports, including the report on Form 10-Q for the quarter ended September 30, 1998. Actual results may vary materially.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:39:00 AM
From: Kerm Yerman	Respond to of 15196

PIPELINES / Koch Pipelines Canada Ltd. Installment Payment - Purchase CALGARY, Dec. 11 /CNW/ - Koch Pipelines Canada Ltd., the General Partner of Koch Pipelines Canada, L.P., announced today that gross proceeds of $150 million have been received in satisfaction of the Instalment Receipt note payable. This represents 100 percent of the final instalment due, and successfully completes the Partnership's 1997 purchase and payment for the four feeder pipelines previously owned and operated by various subsidiaries of Koch Industries, Inc. Koch Pipelines Canada L.P. units commenced trading on the Toronto Stock Exchange under the symbol KPC.UN at noon (EDT) on November 27, 1998.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:43:00 AM
From: Kerm Yerman	Respond to of 15196

TSE NOTICE / TSE 300 Composite Index Change - Northstar Energy Corp Exch. (NSX) TORONTO, Dec. 11 /CNW/ - Effective before the open on Tuesday, December 15, 1998, the Exchangeable shares of Northstar Energy Corporation will be included in the TSE 300 Composite Index in substitution for the common shares of the company. It has been announced that Northstar Energy Corporation shareholders have accepted the Plan of Arrangement between Northstar Energy Corporation and Devon Energy Corporation. Please note the following changes to the TSE 300 Composite Index before the open on Tuesday, December 15, 1998: Stock to be added: Northstar Energy Corporation Exch. (NSX) Group/Subgroup - 3.02 (Oil & Gas Producers) Stock to be removed: Northstar Energy Corporation (NEN) Group/Subgroup - 3.02 (Oil & Gas Producers) Note: Northstar Energy Corporation Exch. (NSX) will also be added to and Northstar Energy Corporation (NEN) will be removed from the TSE 200 Index effective before the open on Tuesday, December 15, 1998.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:47:00 AM
From: Kerm Yerman	Respond to of 15196

PIPELINES / BC Gas files new application to build Southern Crossing Pipeline, announces additional third party participation VANCOUVER, Dec. 11 /CNW/ - BC Gas Utility Ltd. (BC Gas) announces that it is filing today an application to the British Columbia Utilities Commission (BCUC) for a Certificate of Public Convenience and Necessity to construct and operate the Southern Crossing Pipeline (SCP) project. In April, 1998 the BCUC denied an earlier application but noted that BC Hydro would have requirements for natural gas to fuel thermal generation projects and directed BC Gas to examine the feasibility of obtaining peak shaving from BC Hydro and its natural gas-fired electricity suppliers. The BCUC further noted ''if there is a requirement for new pipeline infrastructure upstream of Huntingdon to serve these loads, BC Gas may wish to re-examine the SCP and attempt to obtain commitments from BC Hydro for capacity on the SCP which would make it a viable alternative.'' BC Gas has now entered into peak service agreements and transportation agreements with BC Hydro and has also concluded transportation and peak shaving agreements with PG&E Energy Trading, Canada Corporation (PG&E Energy Trading Canada). With offices in Calgary and Saskatoon, PG&E Trading Canada is one of the largest traders of natural gas in Canada. It is a subsidiary of PG&E Corporation, a major player in the North American energy business. Combined, these agreements provide BC Gas with 105 million cubic feet of firm shipping commitments and peak day gas supply delivered at Huntingdon in the Fraser Valley for up to 15 days a year for a 10 year period. Commenting on today's filing, BC Gas President and CEO, John Reid said, ''This is a good day for British Columbia and a great day for gas customers. I am delighted we have been able to work with BC Hydro in the best interests of gas and electricity customers. And I am very pleased that such a significant organization as PG&E Energy Trading Canada sees the strategic value of the Southern Crossing Pipeline project. ''British Columbia will benefit in the North from the construction of the Alliance Pipeline to Chicago and the Southern Crossing Pipeline will provide economic stimulus across Southern B.C. as well as provide energy customers with security of supply and competitive prices.'' The project represents an investment of approximately $350 million which is expected to create in excess of 3,300 person-years of direct and induced employment in British Columbia. Senior Vice President, Randy Jespersen, the executive responsible for the SCP project, stated, ''Having satisfied the directives of the April 3 BCUC order, we look forward to a speedy examination and approval of our application. ''To date we have enjoyed a high level of co-operation from key stakeholders and incredible support from the communities along the route. Virtually every municipal and regional district council from Cranbrook to Hedley have passed motions and sent in letters of support for this project. So too have the Osoyoos Indian Band. We look forward to delivering it for them - in operation on time in November, 2000.''

To: Kerm Yerman who wrote (14236)	12/12/1998 1:54:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Casing Set on Harken's Islero #1 Well in Colombia DALLAS, Dec. 11 /CNW/ -- Harken Energy Corporation (Amex: HEC) announced today that it has successfully set intermediate casing to the bottom of the hole at 7,616 feet on its Islero #1 well on the Cambulos Association Contract Area of Colombia and expects to drill out into the Cimarrona formation shortly. During the next five to seven days, the Company will be modifying its drilling equipment in order to convert to an under balanced drilling program for the remainder of the well's drilling phase. Mechanically, the well bore is in very good condition. While the Company has been drilling at a very slow rate per day during the last few weeks, there have been no major technical problems. During the last few hundred feet of the well's drilling progress, Harken's technical personnel have noted close similarities of the well cutting samples to samples taken from surface outcrops of the Cimarrona and other formations located just east of the Islero #1 surface location. Additionally, most recent cutting samples from the well show a change in formation to include small limestone samples which indicate that the well might be nearing our target Cimarrona formation. Mikel D. Faulkner, Harken's Chairman stated, "Although the drilling to date on the Islero #1 has been deeper and more time consuming than originally expected, the geological sequence in which the formations were encountered is very encouraging to us. Our drilling should resume early next week. We are very encouraged by these recent developments and will make announcements of any key or material events as they occur." Harken Energy Corporation ("Harken") explores for, develops and produces oil and gas reserves domestically and internationally. Certain statements in this news release regarding future expectations and plans for International oil and gas exploration and development may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as the inherent uncertainties in interpreting engineering data related to underground accumulations of oil and gas, timing and capital availability, discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 1997. Actual results may vary materially.

To: Kerm Yerman who wrote (14236)	12/12/1998 1:57:00 AM
From: Kerm Yerman	Respond to of 15196

MERGERS - ACQUISITIONS / Devon Energy and Northstar Energy Announce Completion of Merger OKLAHOMA CITY and CALGARY, Alberta, Dec. 11 /CNW/ -- Devon Energy Corporation (AMEX: DVN) and Canadian-based Northstar Energy Corporation (Toronto: NEN) today announced that the merger of the two companies has been completed. The merger, which was originally announced on June 29, 1998, was overwhelmingly approved by the shareholders of both companies. At the special shareholders meetings held this week, more than 95 percent of the shares voted in each meeting were in favor of the merger. Final Terms of Merger Devon is issuing approximately 16.1 million common equivalent shares to the Northstar shareholders. In addition, Devon is assuming US$312 million in existing Northstar debt. Northstar shareholders are receiving .235 exchangeable shares for each Northstar share. The shares are exchangeable at the holder's option into Devon common stock on a one-for-one basis. The exchangeable shares are tradable on the Toronto Stock Exchange under the symbol NSX. The Merged Company With a total capitalization of US$1.9 billion, Devon Energy Corporation is one of the top 15 US-based independent oil and gas producers. It is uniquely positioned to take advantage of growth opportunities both in the US and in Canada. -- The company is balanced with 54 percent of its proved reserves in the U.S. and 46 percent in Canada. -- The company has total proved reserves of approximately 300 million barrels of oil equivalent. -- The company has considerable exposure to growing North American natural gas markets. This is balanced by substantial oil reserves, particularly in the Permian Basin of the US. -- The company enjoys significant economies of scale in each of its five producing regions. Accordingly, the company is a low cost producer in both the US and Canada. -- The company has a large inventory of drilling opportunities on its 2.6 million net acres of undeveloped leasehold. -- The company has 48.4 million outstanding common and common equivalent shares with approximately 36 million shares in public float. -- The company is highly liquid with US$16 million in working capital, only US$340 million in debt and substantial unused credit lines. -- The company has proven management teams in place in both the US and Canada. J. Larry Nichols, President and CEO of Devon, stated: "This merger creates a company with extraordinary growth opportunities in the US and Canada and the financial strength to pursue them." John A. Hagg, President and CEO of Northstar, added: "We are very excited about the union of Devon and Northstar. The combination of Devon's financial strength and the opportunities available today in the Canadian industry should work to the benefit of both groups of shareholders." Devon Expands Board by Two Directors Simultaneous with the completion of the transaction, Devon expanded its Board of Directors to 11 members to include John A. Hagg and Michael M. Kanovsky. Mr. Hagg, the CEO of Northstar, and Mr. Kanovsky were both directors of Northstar prior to the merger.

To: Kerm Yerman who wrote (14236)	12/12/1998 2:07:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / More Hostile Bids Seen For Canadian Oil Companies CALGARY, Dec 11 - Canadian oil and gas producers should brace themselves for further consolidation following three uncontested hostile takeovers in the past four months, industry analysts said on Friday. "Definitely it's the start of a new trend," said David Stenason, analyst with Montreal-based brokerage ScotiaMcLeod. "It used to be, not very long ago, that companies were reluctant to make a hostile takeover offer, because they understood there were lots of white knights in the wings." "The big difference in the last six months has been low oil prices, the failure of gas prices to recover, and high debt levels," Stenason said. "White knights can't afford to be white knights." "I think we'll continue to see hostiles in this market." The latest hostile takeover target was Blue Range Resource Corp. , which fell to rival Big Bear Exploration Ltd. on Thursday after failing to find a white knight to counter Big Bear's share swap offer. Big Bear offered 11 of its shares for each Blue Range share after it was approached by several of Blue Range's largest shareholders who were unsatisfied with the company's direction. At current stock prices for the two companies, the deal was worth about C$167 million. Potential suitors are loath to pay a premium for any stock in a market where spending and debt levels are being tightly monitored, Craig Langpap, analyst with Calgary-based Peters & Co. Ltd. said. "If there's fair value, they'll be gone," Langpap said. "And fair value is in the eyes of the beholder." "Unless there's some compelling strategic reason why you can do a better job than other people, generally the bids that come in are fair," he said. Langpap cites the C$445-million hotile takeover of Amber Energy Inc. by Alberta Energy Co. Ltd. , which closed in early November, as an example of a bid that was at first seen to undervalue Amber, but eventually came to be viewed as fair. In early September, Sunoma Energy Ltd. concluded a C$220-million hostile takeover of Barrington Petroleum Ltd. after it failed to attract any rival offers. Because of the depressed condition of the Canadian dollar compared with its U.S. counterpart, subjects of hostile bids often look south for a white knight, but U.S. companies are also suffering with low oil prices, Langpap said. Stenason expects the consolidation to continue even if oil and gas prices recover. "With the vast number of public companies in this sector, you're going to continue to see M&A activity, attempts at consolidation and it's going to happen in good markets as well," Stenason said. "What could happen in a good market is the white knights might reappear."

To: Kerm Yerman who wrote (14236)	12/12/1998 2:12:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Canada Allows Superior Propane To Run ICG At Arm's Length CALGARY, Dec 11 - A Canadian competition tribunal on Friday allowed Superior Propane Inc. to run just-purchased ICG Propane Inc. as a separate entity while the quasi-judicial panel mulls whether to allow a full-blown merger of the two. Under the so-called hold-separate order, Calgary-based Superior, Canada's biggest propane distributor, will establish a five-person board of directors for ICG and name one of its staff to monitor compliance with the terms of the deal. The arrangement, agreed to earlier this week by Superior and Canada's Competition Bureau -- the agency that wants the merger dissolved or radically changed -- will be in place while the tribunal reviews the proposed marriage. A merger resulting from Superior's C$175-million purchase of ICG from former owner Petro-Canada would result in one entity controlling more than 70 percent of the country's propane distribution market. "Superior is confident that this arrangement will enhance the value of its investment in ICG during the period when the bureau may present its case to the Competition Tribunal related to the ultimate merger," Superior said in a statement. The bureau, Canada's competition watchdog, has said the merger should not be allowed because the new entity would enjoy a monopoly or near-monopoly across the country in the sales and distribution of propane, a natural gas byproduct used as a fuel for heating, transportation and barbecuing. The agency, which said it had received hundreds of calls from interested parties that have concerns over the deal, wants a public hearing on the issue. Superior, meanwhile, has argued that propane represented just 2 percent of Canada's energy mix and was itself under intense competitive pressure from other sources. As part of the hold-separate agreement, various Superior executives, such as President Geoff Mackey and Vice-President of Western Operations Peter Jones, will sever ties with their company and shift their responsibilities solely to running ICG. Also, 14 of the 110 ICG branches that do not overlap with Superior's locations will be immediately transferred to Superior, the company said. Superior Propane Income Fund units were up C$0.10 to C$14.90 on Friday.

To: Kerm Yerman who wrote (14236)	12/12/1998 2:16:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Moody's Downgrades Hurricane Hydrocarbons TORONTO (CP) -- Low oil prices and tumult in Kazakhstan have left Hurricane Hydrocarbons Ltd. of Calgary in a "deteriorated financial situation," Moody's Investors Service reported Friday. The New York rating agency downgraded $105 million US worth of Hurricane 11.75 per cent senior notes to Caa2 from B3. "Hurricane appears to have consumed its balance sheet liquidity," Moody's said in a release, and "significant price relief appears to be needed" as world oil prices continue to plumb 12-year lows. Hurricane has the additional problems of operating amid the "legal, political and commercial risks" of the former Soviet republic's transition to capitalism. The company relies on crude-oil sales to a single Kazakh refinery. It is paid in local currency, the tenge, but its debt and other costs are in dollars. And there is "poor receivables quality" in dealings with the Shymkent refinery in central Asia. "Unless Hurricane's economics recover," Moody's says, "it will not generate sufficient cash flow for interest expenses or capital expenditures." Hurricane reported a net loss of $25.6 million dollars US on sales of $39.9 million in the three months ended Sept. 30, compared with a year-earlier profit of $9.5 million on $47 million in sales. Hurricane shares closed Friday at $2, down 14 cents on the day and down from a 52-week high of $12.25.

To: Kerm Yerman who wrote (14236)	12/12/1998 2:19:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

IN THE NEWS / Big Bear Exploration claims takeover of Blue Range Resources CALGARY (CP) -- Big Bear Exploration Ltd. is claiming an early victory in its unsolicited takeover bid for larger rival Blue Range Resource Corp. Calgary-based Big Bear said today it has received indications from "at least 65 per cent" of Blue Range shareholders that they have or are in the process of tendering their stock to Big Bear in a $190-million share swap. The bid expires tonight at 11:59 p.m. MST. "As a result of our meeting with the Blue Range board of directors (late Thursday), we understand that no other acceptable proposals were received," Jeff Tonken, chairman and chief executive of Big Bear, said in a release. "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 in acceptance of Big Bear's offer prior to the expiry time." Big Bear has offered 11 shares of Big Bear for each share of Blue Range. Blue Range, which produces mostly natural gas, has been under fire recently for missing production targets. Big Bear officials say the innovative bid represents fair value of $5.72 for each Blue Range share.