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 (14318)	12/16/1998 4:45:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Canadian Conquest Exploration Inc Acquires Natural Gas Property & Provides Drilling Update CALGARY, ALBERTA-- Canadian Conquest Exploration Inc. ("Conquest" or the "Company") advises that it has entered into an agreement in principle to acquire an interest in a producing natural gas property in its west central Alberta growth area for $3,550,000, prior to adjustments. The property is currently producing approximately 1.6 MMCFD of sales gas and 60 barrels per day of associated natural gas liquids, net to the interest acquired. Proven plus probable working interest reserves, net to the interest acquired, are estimated by the Company to be approximately 570,000 barrels of oil equivalent. Conquest has identified further development opportunities on the property which will be undertaken during the first quarter of 1999. The effective date of the acquisition is November 1, 1998 and closing is anticipated early in 1999. The acquisition will be funded utilizing Conquest's existing credit facilities. The acquisition is consistent with Conquest's strategy to improve and expand its asset base in western Canada through a combination of exploration and development drilling as well as acquisitions within the Company's selected growth areas. Conquest also wishes to provide an update on its operating activities. In its northwestern Alberta area, the Company recently completed the CONQUEST HOTCHKISS 3-28-93-1 W6M well (CCN - 100% WI) as a Mississippian Debolt gas well. Upon completion, the 3-28 well flowed natural gas at a stabilized rate of approximately 1 MMCFD. The well, along with an adjacent shut-in gas well, will be tied in for production to Company owned and operated facilities early in 1999. Access conditions permitting, Conquest anticipates drilling two additional wells on natural gas prospects at Hotchkiss and Sutton in northwestern Alberta prior to year end. At Wolf, in west central Alberta, completion operations are underway on the CONQUEST et al ROSEVEAR 10-14-55-16 W5M well (CCN - 50% WI). In addition, the Company anticipates commencing drilling operations on the CONQUEST NEWPORT ROSEVEAR 1-15-55-16 W5M well (CCN - 50% WI) prior to Christmas, access conditions permitting. At Mahaska, also in west central Alberta, the CONQUEST et al BLUERIDGE 13-11-58-11 W5M well (CCN - 50% WI) has been cased for completion as a potential natural gas well and will undergo completion operations as soon as possible. In southwest Saskatchewan, the Company has commenced drilling operations on the CONQUEST INSTOW 8B2-24-9-18 W3M horizontal well (CCN - 87.50% WI) and anticipates having the well completed prior to year end. Conquest is also proceeding with the tie-in of two natural gas wells which should collectively add approximately 2 MMCFD of natural gas production, net to the Company, prior to year end. Conquest is a Calgary based crude oil and natural gas exploration and producing company with operations in Western Canada. The Company's common shares are listed on The Toronto Stock Exchange under the symbol "CCN".

To: Kerm Yerman who wrote (14318)	12/16/1998 4:51:00 PM
From: Kerm Yerman	Respond to of 15196

CORP REPORT / Crestar Energy Updates 1999 Hedging Programs, Outlook CALGARY, Dec. 16 /CNW/ - Crestar Energy Inc. (''Crestar'' - TSE & ME: CRS) reported today that it has increased its natural gas and heavy oil hedging program for 1999. Mr. Barry Jackson, Crestar's President and CEO provided the update, stating, ''We have continued our program of hedging natural gas volumes and heavy oil differentials for the upcoming year. In addition to the 214 mmcf/d of natural gas hedged for the period from October 1998 to March 1999 at prices exceeding $2.50 per mcf at the wellhead, we have initiated a 'summer' gas hedging program, covering the period from April through October of next year. To date, we have fixed the price for over 150 mmcf/d of natural gas through this period at equivalent wellhead prices above $2.20 per mcf.'' Mr. Jackson went on to report that Crestar has increased the volume of hedged heavy oil differentials from 6,000 bbls/d to 9,000 bbls/d. For these volumes, the Bow River Heavy Differential has been either fixed at or collared around US$3.25 per barrel for 1999. ''These differentials reflect cyclical lows and, together with sharply reduced condensate blending costs, they have generated a substantial improvement to our netback for heavy oil during the second half of 1998,'' he added. Narrower differentials, combined with Crestar's higher quality heavy crude and low operating costs enable the Company to generate cash margins even at the record low crude oil prices experienced in recent weeks. With respect to the Company's natural gas and liquids development program, Mr. Jackson reported, ''We have established more than 105 mmcf/d of new deliverability during the fourth quarter of 1998, significantly exceeding our original expectations of 90 mmcf/d. However, we have experienced delays in completing the tie-ins of this new production, in large part due to pipeline and facility access issues with surface land owners. To the end of November, approximately 40 mmcf/d of new volumes have been tied-in but have been offset by normal production declines and operational downtime. We anticipate that up to 30 mmcf/d will be brought onstream by the end of December with the balance delayed to the first quarter of 1999. We are working diligently with the land owners and the AEUB (Alberta Energy and Utilities Board) to resolve these problems.'' Despite the delays, Crestar still expects to show improvement in cash flow from operations and cash flow per share for the fourth quarter of 1998, compared with earlier quarters this year. Higher natural gas prices and improved liquids yields from narrower differentials will contribute to improved cash flow. Mr. Jackson concluded, ''The outlook for 1999 represents the most challenging environment for the industry in the past decade. Crestar has established a capital budget for the year of $325 million based on our project inventory. However, with the current low oil prices, actual expenditures could be significantly below this target, as we will ensure that cash flow fully funds capital investment and, at the same time, reduces long term debt. In this environment, we will continue to inventory new projects for investment upon a return to higher oil prices.'' Crestar Energy is a senior Canadian producer of crude oil, natural gas and natural gas liquids. The Company's shares, which trade on the Toronto and Montreal stock exchanges under the symbol ''CRS'', are included in the TSE 300 and TSE 100 Composite Indices.

To: Kerm Yerman who wrote (14318)	12/16/1998 4:54:00 PM
From: Kerm Yerman	Respond to of 15196

CORP NOTICE / CanBaikal Resources Corporate Update CALGARY, Dec. 16 /CNW/ - CanBaikal Resources Inc. (''CanBaikal'') wishes to clarify the mistaken release of a Delinquent Filer Notice issued by the B.C. Securities Commission. CanBaikal has made all statutory filings on time to all jurisdictions wherein it is a reporting issuer. Unfortunately, the B.C. Securities Commission mistakenly placed CanBaikal on the Delinquent Filers Notice effective September 18 1998. Once this mistake was drawn to their attention, and they realised that CanBaikal's filings were up to date, CanBaikal was removed from this list, although the Commission did not release a subsequent notice explaining their error. The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

To: Kerm Yerman who wrote (14318)	12/16/1998 4:57:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY DISPOSITION / Canadian Occidental Petroleum Ltd. - 1998 Asset Dispositions Total $630 Million CALGARY, Dec. 16 /CNW/ - Canadian Occidental Petroleum Ltd. (CXY-TSE, ME, AMEX) announces the signing of purchase and sale agreements for the disposition of a further $370 million of non-core oil and gas assets. This raises the total value of property sales negotiated during 1998 to $630 million. CanadianOxy closed $103 million of sales during the first three quarters of 1998 year. An additional $235 million of sales are expected to close in the fourth quarter and the balance in January 1999. Sales Achieve Attractive Prices ''We're very pleased with the success of our dispositions program,'' said Vic Zaleschuk, President and Chief Executive Officer of CanadianOxy. ''We've sold non-core assets in a difficult market and have achieved very attractive prices.'' The 1998 dispositions include all of the holdings of a wholly owned subsidiary of CanadianOxy in the United Kingdom sector of the North Sea for Cdn $210 million. These include interests in three producing gas fields, Caister (30% W.I.), Vulcan (7.88%) and Valiant (12.5%), a 15% interest in the Caister Murdoch gas pipeline, a 10% interest in the Eagles gas pipeline and interests in eight exploration blocks. Proved reserves associated with the U.K. assets total 83 billion cubic feet and production currently averages about 35 million cubic feet per day. The Canadian assets include various properties in northeast British Columbia, west central Alberta and northeast Alberta. Proved reserves total 290 billion cubic feet of natural gas and 20 million barrels of oil with current production averaging about 125 million cubic feet of natural gas and 6,000 barrels of oil. Undeveloped land totals 660,000 net acres. The sale prices for the assets reflect an average valuation of $10 per barrel of proved oil equivalent reserves and $26,000 per barrel of daily oil equivalent production. Proceeds Will Fund New Growth The proceeds from the dispositions program will be used to reduce outstanding debt in the short run and to fund capital programs and acquisitions. ''By the time the last of these dispositions close in January 1999, our long term debt will be about $1.9 billion, credit lines will be replenished, and we'll be in good shape to weather volatility in commodity prices'', said Marv Romanow, Chief Financial Officer. ''In the current environment, this kind of financial flexibility is valuable. We will be drilling a number of prospects in 1999 which could require significant follow-up capital. And, if this environment persists, we expect to see attractive opportunities to add to our portfolio.'' Production Replaced Through Growth CanadianOxy's International operations are now focused on exploration and production for oil in five core countries: Yemen, Nigeria, Colombia, Indonesia and Australia. North American operations are focused on heavy oil in west central Saskatchewan, light oil in the Williston basin, shallow gas in the Medicine Hat and Primrose areas of Saskatchewan, light oil in northeast British Columbia and gas and oil in the shelf and deep water regions of the Gulf of Mexico. ''Although I don't like to give up 25,000 barrels equivalent of daily production, I measure our performance in terms of value added rather than only production growth. Our business is now concentrated where we have the greatest competitive advantage and the best prospects for value growth. Ongoing development programs in Yemen, the Gulf of Mexico and Canada plus new projects in Nigeria, and Australia will replace this production volume in the near term'' said Zaleschuk. CanadianOxy is an independent Canadian-based global energy and chemicals company. Core business activities include the exploration, development, production and marketing of crude oil and natural gas and the manufacture and marketing of industrial chemicals. CanadianOxy is one of Canada's largest oil and gas producers with daily production of approximately 240,000 barrels of oil equivalent.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:02:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Seven Seas Petroleum Announces Status of Current Operations HOUSTON, Dec. 16 /CNW/ - Seven Seas Petroleum Inc. (Amex: SEV; Toronto: SVS.U) (''Seven Seas'') currently has three (3) wells in various stages of drilling or completion. The company continues to test and evaluate the El Segundo No. 6 well. Preliminary test results have been delayed by fluid communication behind pipe between the Cimarrona formation and shallower formations due to cementing problems. The shallower zones will be re-cemented and the Cimarrona formation re-perforated and treated and tested. A completion unit is currently on the Tres Pasos No. 3 well and the Company will proceed to perforate and test a portion of the ''deeper'' Villeta or La Luna formation. This will be the first test of formations below the Cimarrona on the Emerald Mountain structure. The well was drilled to a measured depth of approximately 10,187 feet, approximately 2,769 feet below the depth of the Cimarrona formation. The deeper drilling was entirely in the Villeta or la La Luna formation and encountered 1,850 gross feet of fractured clastics consisting of interbedded sandstones, siltstones and shales with shows of oil and gas. Log analyses indicated that these deeper zones have the potential to be productive. Testing will likely continue for several weeks or more. The Company also continues to drill the Tres Pasos No. 1-W horizontal well. This well is the Company's first horizontal well on the Emerald Mountain structure. It is anticipated that intermediate pipe will be set soon at which time drilling on the horizontal portion of the Cimarrona formation will begin. The well should reach the horizontal drilling objective after year-end. Any decision to drill a horizontal well from the Tres Pasos No. 4 well location has been deferred until, among other information, the results of this first horizontal well are known. GHK Company Colombia, a wholly owned subsidiary of Seven Seas, is the operator of the Emerald Mountain project. Seven Seas holds a 57.7% interest in the Emerald Mountain project which encompasses the Dindal and Rio Seco Blocks. Seven Seas Petroleum Inc. is an international oil and gas exploration and production company.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:05:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Place Resources Corp New Minehead gas facility on-stream CALGARY, Dec. 16 /CNW/ - Place Resources Corporation is pleased to report that its Minehead facility located at 5-20-48-17 W5M, which has a design capacity or 25 million cubic feet per day, commenced operations on December 8th, 1998. Currently one well, the 5-20-48-17 W5M well drilled in September, is pipelined into the facility. This well is currently producing approximately 4 million cubic feet per day together with liquids of 240 barrels per day. For the first nine months of the year, Place produced an average 6.4 million cubic feet per day of natural gas and 1,170 barrels per day of oil and liquids. The recently completed well 5-16-48-17 W5M is currently being tested and pipeline is currently being laid to connect this well and the 11-17 gas well to the 5-20 facility by year-end. Three additional wells are currently drilling in the area; a Place operated well at 13-9-48-17 W5M; an Encal operated well at 14-19-48-17 W5M (Place 12.5%); and a Rio Alto operated horizontal well at 1-7-49-17 W5M (Place 33 1/3%).

To: Kerm Yerman who wrote (14318)	12/16/1998 5:11:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Derek Resources Corporation announces property purchase completed VANCOUVER, Dec. 16 /CNW/ - Derek Resources Corporation VSE Trading Symbol: DRS Derek Resources Corporation reported that the company has now completed its final option payment of US$175,000 to acquire a 75 percent interest in the LAK Ranch enhanced recovery oil project in Wyoming. The company also said it is in advanced discussion with several parties respecting funding of initial start-up capital requirements of approximately CDN$10.0 million. The LAK Ranch property, located in the Powder River Basin of eastern Wyoming, three miles southeast of Newcastle, is considered an excellent prospect for application of steam-assisted gravity drainage (''SAGD'') and other new enhanced recovery techniques. The development to date includes: - Proven 100+ million barrels of oil confirmed through drilling and engineering with possible reserves of up to 150 million barrels; - Total third party engineered lifting costs estimated at US$5.76/bbl with recoveries exceeding 80 percent; and - A proposal in writing from a major oil company to purchase LAK Ranch oil at a price equivalent to West Text Intermediate (''WTI''). LAK Ranch Oil is napthenic, very low in sulphur and contains no paraffin. It is considered an excellent jet fuel feedstock. Company president Barry C.J. Ehrl said Derek has adopted a corporate strategy of pursuing already defined oil reserves in steeply dipping reservoirs that may be amenable to various recovery processes such as SAGD, GAGD and low grade thermal oxidation. He also said the company has recruited a highly competent technical team and has already identified several other oil fields that may be amenable to the SAGD technique to be applied at the LAK Ranch.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:12:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Shiningbank Energy Announces Quarterly Distribution CALGARY, ALBERTA--Shiningbank Energy Management Inc., manager of the Shiningbank Energy Income Fund (the "Fund"), today announced its quarterly distribution to unitholders for the fourth quarter of 1998. The record date for the distribution is December 31, 1998 and the distribution will be made on January 15, 1999. THE AMOUNT OF THE DISTRIBUTION WILL BE $3,128,160, OR $0.36 PER UNIT. The Fund has a total of 8,689,333 units outstanding. This distribution for the fourth quarter of 1998 brings total distributions for the year to $1.43 per unit, comprised of $0.37 per unit in the first quarter, $0.35 per unit in each of the second and third quarters and $0.36 per unit in the fourth quarter. These distributions result in a cash-on-cash yield of 14.6 percent based on recent unit prices. The concentration of Shiningbank's production portfolio in natural gas, and the Fund's ability to replace production and exploit reserves at cost-effective rates, have provided strength to its distributions and its unit price. With Shiningbank's continued leverage to natural gas (60 percent of production), the Fund is well positioned to take advantage of higher gas netbacks as prices firm through the winter of 1998/99. Shiningbank Energy Income Fund is a conventional oil and gas royalty trust and its units are listed on the The Toronto Stock Exchange under the symbol "SHN.UN".

To: Kerm Yerman who wrote (14318)	12/16/1998 5:14:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / Maxwell Oil & Gas to Issue Flow-Through Shares CALGARY, ALBERTA--The Board of Directors of Maxwell Oil & Gas Ltd. wish to advise that the Company expects to raise net proceeds of up to $0.75 million through a private placement of flow-through shares priced at $1.00 per share. Securities issued under this placement will be subject to a twelve month hold period and Alberta Stock Exchange approval. Proceeds from the offering will be used to supplement funding of Maxwell's 1999 exploration program. The Company also wishes to announce that its Mitsue, Alberta gas prospect was recently drilled and abandoned and that its Mica, B.C. light oil prospect (26.5 percent working interest) has been cased as an oil well in the Mica formation.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:17:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / TMT Resources Inc. announces service rig released; production resumed VANCOUVER, Dec. 16 /CNW/ TMT Resources Inc. VSE Symbol TMT Mr. Randy Schuette, President T.M.T. Resourccs Inc, (''TMT'') announces that further to news dated December 7, 1998 the service rig has now been released and the well has been placed back on production. The well is currently producing oil with low water content from 98 meters of perforations in the Swan Hills Member of the Beaverhill Lake formation. The Alberta Energy and Utilities Board has given verbal approval for injection into the 12-25-64-11 W5M well. The injection pump is being prepared for installation.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:19:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Grace Resources Inc. Releases Second Quarter Results CALGARY, Dec. 16 /CNW/ - GRACE RESOURCES INC. (''GRI'') reports that for the six-month period ended October 31, 1998, cash flow was $22,631 ($0.00 per share) as compared to a cash flow deficiency of $6,160 ($0.00 per share) for the same period in 1997. Its loss was $20,042 ($0.004 per share) as compared to a loss of $6,160 ($0.002 per share) for the first two quarters of 1997. The second quarter is the first quarter of oil and gas operations for the Company. Production for the quarter averaged 55 barrels of oil equivalent per day producing $86,265 of oil and gas revenue. As previously announced, Grace completed another property acquisition in November, 1998, doubling the Company's production to 100 barrels of oil equivalent per day. Grace Resources Inc. (''GRI'') is a publicly traded company on The Alberta Stock Exchange.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:21:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Plains Energy Services Ltd. Addition of Production Logging Capabilities CALGARY, Dec. 16 /CNW/ - Plains Energy Services Ltd. is pleased to announce the addition of production logging capabilities to our Wireline Services Division. This announcement follows one week after our first field production logging run. Plains now offers a complete line of production logging services, including fullbore spinner, fluid density, temperature, pressure, radioactive tracer and noise surveys to accompany its broad spectrum of related cased hole wireline services. A strong technical department specializing in the acquisition and interpretation of production logs supports these new services. With these services Plains can provide flow profiles for single and multi-phase producers, injection profiles, channel detection, leak detection, surface casing vent flows and problem well analysis. Joining the Plains Energy team to lead our production logging unit are Perry Huber, CET and Dale Soppit, both of whom have over 15 years experience relating to production logging and analysis. The introduction of production logging services will assist Plains in weathering the current downturn in oilfield service activity, given the predisposition of exploration and production companies to focus on production enhancement rather than new drilling in a low commodity price environment, and will provide a new stable source of cashflow for this division. Plains Energy Services Ltd. is an integrated oilfield service company providing North America with services in all aspects of the completions and production sectors of the oilfield services business. Plains Energy Services Ltd. trades on The Toronto Stock Exchange under the symbol ''PLA''.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:24:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Dynastar Inc. Announces New President CALGARY, ALBERTA--Dynastar Inc. (the "Corporation") announces that Mr. John Munro has been appointed the President of the Corporation effective December 14, 1998. Mr. Munro has been the Vice-President, Operations, since August of 1998 and was appointed the President to replace Mr. Peter Kreutzer who resigned as an officer and director of the Corporation effective December 14, 1998. As President of the Corporation for the last year, Mr. Kreutzer guided the Corporation through the completion of its initial public offering as a junior capital pool company in April and the completion of the Major Transaction, being the acquisition of A & B Drilling Ltd. in August. The Corporation expects that Mr. Munro, through his years of experience in the seismic drilling industry, will provide the Corporation with the experience and leadership necessary to continue to build and expand the business of A & B Drilling Ltd. Mr. Ben Vandenhoven, a director of the Corporation, has been appointed the Vice-President, Operation, to fill the vacancy created as a result of the appointment of Mr. John Munro as President.

To: Kerm Yerman who wrote (14318)	12/16/1998 5:27:00 PM
From: Kerm Yerman	Read Replies (12) \| Respond to of 15196

JCP - MAJOR TRANSACTION / Celestar Exploration Ltd. Announces the Conclusion of Major Transaction CALGARY, ALBERTA--Celestar Exploration Ltd. ("Celestar") announced today that the shareholders of Celestar have approved the Major Transaction of Celestar relating to the proposed acquisition of all of the issued and outstanding common shares of Brecon Enterprises Ltd. ("Brecon") for a purchase price of $540,000 payable by the issuance of 2,700,000 common shares of Celestar, having a deemed value of $0.20 per common share. This transaction was concluded effective December 16, 1998, and as a result thereof, Brecon has become a wholly owned subsidiary of Celestar. As a result of the Major Transaction, Celestar has an interest in oil and gas properties with production of 65 BOEPD in the Armada and Robin areas of southern Alberta, with proved reserves having a present value of $1,169,600 and 50 percent risked probable additional reserves with a present value of $194,000 based on constant dollar pricing discounted at 15 percent. Celestar currently has $400,000 in cash, an available line of credit of $400,000 and no debt. Celestar is exploring a number of growth opportunities in Alberta. Following the Major Transaction, Celestar has 6,512,500 issued and outstanding common shares.