Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerm Yerman who wrote (14279)	12/14/1998 7:15:00 PM
From: Kerm Yerman	Respond to of 15196

CORP REPORT / Magin Energy Inc. Announces Approved 1999 Budget CALGARY, Dec. 14 /CNW/ - Magin Energy Inc. is pleased to announce that the Board of Directors of Magin has approved the 1999 operating and capital budget. Magin is planning an active exploration and development capital program of over $40 million in 1999. The program will focus on multi-zone natural gas opportunities within the West Central and Northwest Alberta core areas. The winter program is centered on the Edson, Hamburg and Kaybob South areas. The Edson and Hamburg land blocks were partially acquired through the Torrington acquisition in mid-1998. In Edson, six wells are scheduled in the initial round of drilling, including a deep Wabamun test. Production capability for the Bluesky, Belloy, Viking, Belly River and Elkton formations range from 3 to 5 mmcfd, with the Wabamun potential significantly higher. In the Hamburg area one firm well and one contingent well are planned for the winter season to evaluate Magin's fourteen sections of undeveloped land. The Kaybob South (Windfall) program is a continuation of Magin's successful 1998 program. Magin's 1998 production is expected to exit above 10,000 barrels of oil equivalent per day, which includes gas production of 43 million cubic feet per day. The 1999 capital program is anticipated to increase production by an average of 30 to 40 percent over 1998 average production, to between 11,500 and 12,500 BOE's per day, which includes between 58 and 68 million cubic feet per day of natural gas production. Approximately 62 percent of the planned 1999 capital program will be attributable to drilling and completions, of which 75 percent will be allocated to natural gas activities. Magin anticipates drilling 40 gross (36 net) wells in 1999. With average commodity price assumptions for 1999 of US $15.50 per barrel for crude oil and an Alberta plant natural gas price of $2.45 per thousand cubic feet, cashflow from operations in 1999 is expected to increase by up to 70 percent from 1998 cashflows, to between $35.7 million and $39.3 million, or between $1.18 and $1.30 per basic common share. Each US $1.00 per barrel adjustment for crude oil will increase or decrease cashflow approximately $2.7 million. Debt at the end of 1998 will be approximately $75 million. Currently available debt facilities, the recently announced flow through share financing, minor property dispositions and internally generated cashflow will finance the 1999 capital expenditure program. In the event crude prices remain weak throughout 1999, Magin is prepared to adjust its capital program during the year and still maintain strong growth.

To: Kerm Yerman who wrote (14279)	12/14/1998 7:18:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / ENERTEC Resource Services Inc. Outlook Warning CALGARY, Dec. 14 /CNW/ - ENERTEC RESOURCE SERVICES INC. (''ENERTEC'' or ''the Company'') announced today that a number of its oil and gas industry customers have indicated to ENERTEC that spending on seismic services in 1999 will be considerably reduced from levels these customers had originally anticipated undertaking. It is ENERTEC's belief that its customers' spending plans will again change if they perceive either an improvement or a further deterioration in the oil and gas markets. Certain independent investment analysts have published forecasts of their expectations of ENERTEC's financial performance for the 1999 fiscal year. In the opinion of the management of the Company, the outlook of continuing low commodity prices and ENERTEC's customers' anticipated reductions in seismic spending may render these forecasts significantly different from the financial performance of ENERTEC that will materialize. As a result of its customers' recent indications, ENERTEC has revised the budget for its 1999 fiscal year. This revision was prepared for the purpose of assisting management to evaluate the operational measures it could undertake in light of the expected reduction in demand for its services. In that this budget differs from the analysts' forecasts currently available, the Company wishes to convey the results indicated by the budget. The revised budget was prepared under a range of scenarios which reflect varying circumstances in respect of each of the Company's product lines. The range of basic earnings per share for fiscal 1999 indicated by the revised budget is from $0.07 to $0.37; basic cash flow from operations per share is from $1.58 to $1.91 and EBITDA is from $11.3 million to $14.9 million. This revised budget is subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should the assumptions prove incorrect, actual results may vary in material respect from those reflected in the revised budget. Measures are being undertaken by ENERTEC in response to the current market circumstances. These include reductions in capital expenditures and in both operational and administrative expenses. ENERTEC has entered the current fiscal year debt free and with working capital of $6.0 million. While the Company expects to make drawings on its operating line of credit through the year, the revised budget shows the 1999 fiscal year ending with no debt and working capital of approximately $12 million. The Company currently has a relatively low debt to equity ratio and believes it is well placed in its industry if current market conditions continue for an extended period. ENERTEC anticipates being in a position to evaluate favorable business combinations in these market conditions. ENERTEC Resource Services Inc. is a Calgary based company which operates throughout North America, providing land seismic data acquisition, land and marine seismic data processing services and marine geophysical and navigation services.

To: Kerm Yerman who wrote (14279)	12/15/1998 3:08:00 PM
From: Kerm Yerman	Read Replies (13) \| Respond to of 15196

IN THE NEWS / TransCanada To Spin Off Stake In U.S. Pipeline By CAROL HOWES The Financial Post TransCanada PipeLines Ltd. is preparing to spin off most of its interest in the Northern Border pipeline to the public. TCPL has a 30% interest in the U.S. pipeline and is expected to transfer that stake into a limited partnership, putting 21% into a public offering early next year. The move will net TCPL an after-tax gain of about $60 million, said one analyst. The Calgary-based company is also expected to eventually spin off some of its other assets into the partnership, primarily its 50% interest in the Tuscarora pipeline, which connects with PG&E Gas Corp.'s pipeline system. That system transports gas from Oregon to California and Nevada. The limited partnership will provide TCPL with a vehicle to access U.S. markets and free up some capital in order to avoid an equity issue in 1999, analysts said yesterday. "It is a vehicle they intend to grow," said one analyst, who asked not to be named. Northern Border is a 1,560-kilometre line that runs from the Saskatchewan-Montana border to Chicago. This week it will turn on a $839-million (US) expansion that will increase capacity by 700 million cubic feet per day to 2.4 billion cubic feet per day.

To: Kerm Yerman who wrote (14279)	12/15/1998 3:17:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / No Layoffs - Shell Canada Dodges Bullet, For Now By TODD NOGIER -- Calgary Sun A wave of layoffs and a massive asset selloff that will likely hit the world's largest petroleum producer will not affect its Canadian subsidiary. Shell Canada Ltd. is not part of a massive restructuring program announced yesterday by its parent, Royal Dutch-Shell Group, which is struggling to deal with shrinking profits triggered by low oil prices. "Shell Canada will not be directly affected ... but the environment that affects Royal Dutch-Shell Group also affects us in the Canadian context, too," Shell Canada spokeswoman Janet Rowley told the Sun yesterday. That means the Calgary-based subsidiary plans no layoffs and no massive selloff now -- but that could change, warned Rowley. "We will continue to look for opportunities for efficiency improvements and cost reductions in all areas of our businesses." Shell's parent Royal Dutch-Shell said yesterday its fourth quarter, after-tax earnings will shrink by $4.5 billion US. That kickstarted the cost-cutting strategy which is expected to save it $2.5 billion US a year by 2001. Royal Dutch said it intends to raise money by selling 50% of Montell, a Dutch petrochemical company, and reduce the number of chemical products businesses to 13 worldwide, down from 21. There's no word yet on whether Royal Dutch's separate chemical businesses in Canada will be targeted. The company said further layoffs in addition to the previously announced 6,000 are likely, but brass would give no number. Shell Canada, 78% own-ed by Royal Dutch, was able to skirt the chopping block because it already is lean-and-mean, said Rowley. Shell employs 3,590 in Canada now, down from 4,900 in 1993. "In the early '90s, oil prices fluctuated and costs were coming down," said Rowley. "We were competing with companies a lot smaller than ours and we knew we had to get our cost base down to remain competitive with the best out there." Shell's capital spending budget, for things such as petroleum exploration and production, will re-main unchanged next year at $800 million. And the company re-mains committed to in-vestments in two high-profile projects in Canada -- Sable Island in Nova Scotia and its Muskeg River Mine near Fort McMurray.

To: Kerm Yerman who wrote (14279)	12/15/1998 3:20:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Timor Sea Crude Oil Output Resumes Following Storm MELBOURNE, Dec 14 - Crude oil production from the Jabiru and Challis fields in the Timor Sea off the coast of Western Australia would resume from Monday afternoon, a spokesman for Gulf Canada Resources Ltd (Toronto:GOU.TO) said. The spokesman said the Jabiru floating oil rig had returned to the field once the threat from Cyclone Thelma had passed. The vessel was expected to be reconnected late on Monday as choppy seas abated. He said a crew had also returned to the Challis oil rig to conduct a safety inspection on Monday, with production expected to resume on Tuesday. The two fields in the Bonaparte Basin produce around 15,000 barrels per day. Production ceased last week as the category five Cyclone Thelma caused strong winds and heavy seas. Gulf Canada Resources has a 50 percent stake in the fields. The other partners are Cultus Petroleum NL with 18.75 percent, Norcen International (TO:NCN) with 14.6875, Santos Ltd with 10.3124 percent and the Ampolex division of Mobil Corp (NYSE:MOB) with 6.25 percent. Previous News Release - Timor Seas Jabiru Rig Disconnected Due To Cyclone MELBOURNE, Dec 10 - The Jabiru floating oil rig in the Timor Sea was disconnected on Wednesday night due to severe weather conditions caused by Cyclone Thelma, a spokesman for Gulf Canada Resources Ltd (Toronto:GOU.TO) said on Thursday. ''The Jabiru venture has disconnected from its production riser and is sailing on a southwesterly course into the Indian Ocean where it will await an improvement in the weather,'' the spokesman said. The shut-in of the Jabiru oil field follows the evacuation of the Challis oil rig on Tuesday night. Gulf Canada Resources has a 50 percent stake in the fields. The other partners are Cultus Petroleum NL with 18.75 percent, Norcen International (Toronto:NCN.TO) with 14.6875, Santos Ltd with 10.3124 percent and the Ampolex division of Mobil Corp (NYSE:MOB) with 6.25 percent. The spokesman said the rigs produce around 15,000 barrels per day.

To: Kerm Yerman who wrote (14279)	12/15/1998 3:30:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Well Blowout Deliberately Reignited December 15, 1998 By BOB CHRISTIE Californian staff writer The blown-out natural gas well near Lost Hills is again ablaze, but this time the flame is controlled and where the well's operators have chosen it to be. That's a huge difference from the two weeks between Nov. 23 and Dec. 8, when the well fire 45 miles northwest of Bakersfield raged at the site of the blowout. The new flame was intentionally lit Monday after a new blowout preventer and diverter assembly was placed on the well head last week by workers from Boots & Coots International Well Control of Houston. Natural gas from the well is now being piped to two burn pits designed to allow the safe disposal of the gas the well is producing, according to Aidan Walsh, president of Elk Point Resources Inc. of Calgary, whose subsidiary, Bellevue Resources Inc., operated the well. The well continues to flow an uncontrolled mixture of water, natural gas, condensate and light oil. Equipment designed to separate the water and liquid hydrocarbons from the natural gas is in place and working well, Walsh said. The water and hydrocarbons are being put in tanks, then trucked to processing and disposal sites. Walsh would not say how much natural gas was being flared, or how much liquid gas and oil was being produced. "Before, we just couldn't measure volumes," Walsh said. Now, although measurable, it is too soon to disclose flow rates "until we are able to establish some consistent volumes," Walsh said. The well will likely flow uncontrolled for at least another six to eight weeks, the minimum amount of time needed for a new well to be completed. When that well reaches 13,000 feet, the drill bit will be aimed to intersect the existing well. After the bit enters the blown out well's bore, cement will likely be pumped into the well to "kill it." Because the blown well's metal liner is likely damaged, controlling it by simply closing off a surface valve isn't considered by experts as a likely option. If they tried that, the well could blow out around the casing. The well is one of the deepest in Kern County, at 17,640 feet, and apparently discovered an unknown reservoir of oil and gas. Several more exploration wells will need to be drilled before the size of the find can be confirmed. Continuing Bakersfield Californian news file can be found at bakersfield.com