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 (14344)	12/17/1998 7:22:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

IN THE NEWS / PanCanadian Petroleum Begins Talks To Create Heavy-Oil Alliance Sees Van Horne unit as umbrella for several firms' assets By CLAUDIA CATTANEO - The Financial Post CALGARY -- PanCanadian Petroleum Ltd., the oil and gas production arm of Canadian Pacific Ltd., is in talks with other Canadian energy companies about combining heavy oil operations under its new heavy oil company, Van Horne Oil & Gas Ltd. David Tuer, PanCanadian's president and chief executive, said yesterday the "exploratory talks" revolve around having as-yet-unnamed companies move heavy oil assets into Van Horne and becoming part-owners. Longer term, Van Horne may be sold in a public offering. Mr. Tuer declined to name the companies with which PanCanadian is in discussions. However, the likely candidates can be counted on one hand. They include Gulf Canada Resources Ltd., Ranger Oil Ltd., Canadian Occidental Petroleum Ltd., Imperial Oil Ltd., and Alberta Energy Co. Dick Auchinleck, Gulf president and chief executive, would neither confirm nor deny that the company is in talks with PanCanadian. But he said Gulf is looking at "several options" for its heavy oil assets. PanCanadian created Van Horne this year to hold two thirds of its heavy oil production. Remaining heavy oil assets will stay with the parent. Van Horne will legally come into being on Jan. 1 as an independent company with its own management and board. "We are finding there are companies out there that are interested in what we have to say," Mr. Tuer said. "We believe that some of them will decide to do business with us." Because of low oil prices, PanCanadian will join other energy firms in slashing its capital spending for 1999. Mr. Tuer said 1999 spending, to be finalized at a board meeting today, will fall below $700-million, down from $870-million in 1998, and down from the $1-billion target set for 1998 before oil prices cratered in the fall of 1997. However, adjustments will be made if market conditions change, Mr. Tuer said. PanCanadian, 87% owned by CP, is one of Canada's major producers of heavy oil and its largest producer of natural gas. Heavy oil makes up more than a third of Canadian oil production.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:00:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / U.S. Firm Acquires Vancouver Natural Gas Company SPOKANE, Wash. (AP) -- Avista Energy Canada Ltd., a marketing affiliate of Washington Water Power Co., has acquired Coast Pacific Management Inc., a Vancouver natural gas company. Terms of the deal were not released. The acquisition will combine the Vancouver operations of Coast Pacific Management and Avista Energy. It "presents us with the opportunity to serve more customers, provide those customers with more choices and enhances our access to Canadian natural gas supplies," said T.M. Matthews, chairman, president and chief executive of Washington Water Power. Coast Pacific Management manages and transports natural gas to about 70 large and medium-sized industrial customers throughout British Columbia. Washington Water Power, which will change its name to Avista Corp. on Jan. 1, is a diversified energy services company with annual revenues of more than $3 billion US. It serves hundreds of thousands of electricity and natural gas customers across the Pacific Northwest, California and Nevada.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:03:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Liberal MP Fingers Big Oil For Death Of Suny's TORONTO (CP) -- The predatory tactics of Canada's petroleum titans are to blame for the imminent demise of one of the country's largest independent gasoline retailers, says Liberal MP Dan McTeague. Suny's Petroleum, a familiar gas-station banner across Ontario and Quebec, was forced into receivership late Tuesday "as a direct result of how the oil industry operates," McTeague said. The Burlington, Ont. company did not return phone calls Wednesday. "There's some kind of a plan for someone to buy them out, but they're gone, they're history," said McTeague, who added that Suny's outlets will likely be kept open by a company that buys the operation. "Years of attrition have left these people with very high debt." The Ontario MP is chairman of the Liberal committee on gasoline pricing, which was convened to investigate whether Canada's four integrated oil companies enjoy an unfair advantage or use anti-competitive tactics to market gasoline. "Suny's collapse comes as no surprise for anyone who has examined how the oil industry operates," McTeague said. "Suny's simply could not afford to continue operating as their losses mounted." Suny's had more than 140 outlets across Quebec and Ontario, second only to the more than 300 sites operated by Olco Petroleum in the two provinces. The company comprised the backbone of the independent retailing movement in Ontario, which has been warning for years that it was facing oblivion at the hands of competition from large integrated oil refining and marketing companies. Independent retailers, who say they've lost more than 40 per cent of market share in the last five years, blame Shell Canada Ltd., Petro-Canada Ltd., Imperial Oil Ltd. (Esso) and Suncor Canada for their woes. They accuse the four companies of pricing gasoline and other products below cost to drive smaller independent outlets out of business -- a practice called predatory pricing. Gasoline prices across Canada have been nearing record lows for months as crude oil prices -- one of the central components of the price of a litre of gasoline -- continue to test new 12-year lows. Even then, McTeague -- who has been calling for changes to the federal Competition Act that would protect independent retailers -- said prices in more competitive markets, such as Toronto, remain artificially high.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:06:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Enron Oil & Gas Receives Unsolicited Offer HOUSTON (AP) -- An unidentified bidder wants to acquire Enron Corp.'s majority stake in subsidiary Enron Oil & Gas Co. In a filing with the Securities and Exchange Commission, Enron said the offer was unsolicited. Shares of both the parent company and the subsidiary have risen since Enron disclosed the offer Tuesday. Enron Corp., based in Houston, owns a 53.5-per cent stake in Enron Oil & Gas, which explores for and produces oil and gas. Enron officials declined to comment on the proposal. Low oil prices caused Enron Oil & Gas to report third-quarter profits of $5.9 million US, down from third-quarter 1997 profits of $31.2 million US. In the face of lower oil prices and continuing consolidation in the industry, several major oil companies have announced plans to restructure or combine..

To: Kerm Yerman who wrote (14344)	12/17/1998 8:13:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Canadian Occidental Petroleum Sells North Sea Assets CALGARY, Dec 16 - Canadian Occidental Petroleum Ltd. , one of the country's biggest oil and gas producers, pulled out of the British North Sea on Wednesday with the sale of its British unit to Conoco Inc. subsidiary Conoco (U.K.) Ltd. for C$210 million. "We had not been growing that business for a number of years," CanOxy spokesman Kevin Finn said. "They were not operated (properties), and we have a lot of opportunities in places like Yemen, Nigeria, Colombia, Canada and the United States." CanOxy, 30-percent owned by Los Angeles-based Occidental Petroleum Corp. , is Canada's largest producer of foreign crude oil and a major producer of domestic heavy oil. With the purchase of Canadian Petroleum U.K. Ltd., the British exploration and production affiliate of Houston-based Conoco increased its interest in the Vulcan and South Valiant fields to 50 percent from 42.1 percent and 37.5 percent respectively. Conoco operates both fields. Conoco also gained a 30-percent stake in the Caister field, a 15-percent interest in the Caister Murdoch gas pipeline (increasing its stake to 42.25 percent), a 10-percent interest in the Eagles gas pipeline and interests in eight exploration blocks. Proved natural gas reserves from the assets were 83 billion cubic feet, with average production of 35 million cubic feet a day. The sale was part of a series of planned asset dispositionsthat garnered Calgary-based CanOxy C$630 million in 1998, C$80 million higher than the company expected to receive for the properties, Finn said. The company plans to use the funds to reduce debt and fund capital programs and acquisitions. CanOxy shares closed up C$0.75 at C$18.60 on the Toronto Stock Exchange on the day.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:21:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Positive Spin WORD OF ATTACK SHOULD BOOST OIL PRICES FROM LONG SLUMP By TODD NOGIER -- Calgary Sun Oil prices soared yesterday even before news broke of a U.S. cruise missile attack on Iraq. Now that the world knows one of the world's oil producing countries has been attacked and its crude production thrown into question, some analysts are expecting a $2 to 3$ dollar surge in the price of crude over the next couple of days. "For the last few months everything that could go wrong in the oil industry did go wrong," said Peter Linder, CIBC Wood Gundy senior oil and gas analyst. "Now, everything that could go right seems to be going right." The January futures price for North America's benchmark crude, West Texas Intermediate, surged 83 cents to close at $12.38 U.S. a barrel yesterday. That was in advance of the military strikes. Analysts and oil companies will now watch with rapt attention today's commodity markets to note the probable rise. But Linder and others warn any steep rise in the price of crude will be short lived unless fundamentals needed to prop up prices over the long term return. Linder expects the price to rise then fall back to $14-$15 -- substantially higher than the $10 to $11 the industry has seen lately. But world stockpiles have been depleted by oil companies that are shutting down unprofitable operations around the world. "This is always a self-correcting situation," said Linder. Chris Robb, an investment banker with Traction Capital, said about the only thing pushing up oil now is speculation of oil traders. "Will we get to $15 a barrel because of a couple of air strikes? Maybe. Will it stick? Probably not," said Robb. The current oil price slump, among the longest in history, has battered the bottom lines of many in the industry and undoubtedly sent waves of concern through oil company ranks. But company executives say they watched yesterday's Middle East melee with mixed feelings. They are elated with the prospect of higher oil prices so they can revitalize oil production and exploration programs that have been gutted by cutbacks and restore job security for their workers. "We'll be watching very closely what happens over the next couple of days ... but it's very unfortunate that this comes at the risk of human lives in Iraq," said Petro-Canada spokesman John Percic. Gulf Canada is so skittish on the issue, it wouldn't even comment on Iraqi air strikes. "We hope higher oil prices will return in the future but this is something we have no influence on, no control over so we have no comment," said spokeswoman Linda Lehrer.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:41:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / TSE Gets A Boost From Oil Sector As U.S. Bombs Iraq Canadian oil companies led the Toronto stock market higher Wednesday as world oil prices rose amid reports that Iraq was facing military strikes over another squabble with UN weapons inspectors. About an hour after the North American markets closed, anti-aircraft guns opened fire in Baghdad and a White House spokesman confirmed that U.S. forces had launched air strikes against Iraq. Earlier in the day, UN weapons monitors were ordered to evacuate Baghdad, one day after chief UN inspector Richard Butler reported that Iraq had reneged on its promise of full co-operation with his team. Iraq and its neighbours in the Persian Gulf are among the world's biggest producers of oil. Iraq alone produces three per cent of the world's oil, but has been unable to sell the crude on world markets except only under limited conditions. Any military threat in the region inevitably leads to higher oil prices -- and bigger returns for oil companies. In one sector of the markets, the reaction was predictable: the rise in oil prices pushed oil stocks higher on fears that escalated conflict in the Middle East could cut oil supplies. Sabre-rattling throughout the day sent oil prices surging 83 cents (U.S.) to $12.38 in New York, a 7.2-per-cent rise. As news of the attack hit the wires shortly before 5 p.m. EST, crude prices jumped again in after-hours trading, climbing by as much as 30 cents before easing back somewhat. Oil prices have gained 16 per cent so far this week. The jump in oil prices followed a similar pattern to the sudden increase in prices in anticipation of the 1991 Persian Gulf war, but was of much smaller magnitude yesterday. In the weeks ahead of the launch of Operation Desert Storm, crude prices rose 25 per cent to a peak of about $32 before eventually tapering back down. In New York, oil stocks provided some rare upside action in the stock market, with Exxon up $1.56 at $75.56, Chevron up $1.12 1/2 at $84.12 1/2 and Mobil up $1.19 at $89.62 1/2. Other stocks slid backward as investors fretted about the possibility that Clinton will be impeached this week, said Jim Mountain, managing director of equity trading at ScotiaMcLeod in Toronto. Clinton continues to suffer from a steady loss of support from moderate politicians who could scuttle a bid to impeach the president and have him stand trial in the U.S. Senate. The Dow Jones industrial average lost 32.70 points to close at 8,790.60. In Toronto, strength in key gold and oil stocks boosted the resource-heavy share market at Wednesday's close. Both gold and oil groups make up more than 10 percent of the 300 Composite Index. "They tend to be volatile but that's what really drove our market," Kapala added. "There's speculation that there's some value there." "It's one of the times that we've done well because we have a strong resource component," said Todd Kapala, investment specialist at Priority Brokerage. Investors finally tired of beating up gold and oil issues and instead climbed aboard, Kapala said. But some didn't see yesterday's boost in oil prices as solely driven by the Iraq crisis. "There are also some underlying fundamentals that I think are helping to underpin this," said Doug Gowland, an analyst at First Marathon Securities Ltd. in Toronto. These include reports of lower reinvestment in oil production among states not in the Organization of Petroleum Exporting Countries, as well as a 20-per-cent drop in the production of natural gas in North America, he said. In addition, a meeting today in Madrid with Mexico, Saudi Arabia and Venezuela -- all major producers -- to discuss oil prices was also on the mind of analysts and traders. The TSE 300 composite index rose 47.16 points or 0.76% to close 6,283.83. Turnover was hot and heavy at 127 million shares worth C$1.7 billion. Kapala noted that many fund managers are juggling their portfolios as the end of the year drew near. 10 of Toronto's 14 sub-indexes moved upward. The oil and gas sector added 3.72 per cent. Major moves among Canadian oil stocks included Alberta Energy Co. Ltd.,rising $1.75 to $34.50, Canadian Natural Resources Ltd. rose $1.60 to $23.45, Talisman Energy Inc. $1.50 to $28, Northstar Energy Corp. gained 90 cents at $43.75 and Canadian Occidental Petroleum Ltd. gained 75 cents at $18.60. . Shares of junior oil companies also posted gains. For example, Probe Exploration Inc. climbed 37 cents to $2.29. The gold stocks performed well, adding 3.62 per cent. Barrick Gold Corp. gained $1.80 at $31.55, Franco Nevada was up 80 cents at $30.30 and Placer Dome Inc. closed at $19.25, up 10 cents. February bullion prices rose $2.20 to $296.50 an ounce on Comdex in New York. The biggest loser on the TSE was the conglomerates sector, which lost 0.90 per cent after Canadian Pacific Ltd. dropped 70 cents to $31.65. The financial services sector also performed poorly Wednesday. It gave up 0.55 per cent as Royal Bank dropped $1.45 to $71.25 and Bank of Montreal was off $1.05 to $60.45. Among the most active stocks were Leitch Tech. Corp. gained $1.20 to $36,00 and BCE Inc., Canada's most widely held stock, was up $1.25 to $54.15.

To: Kerm Yerman who wrote (14344)	12/17/1998 8:47:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY DISPOSITION / Pioneer Natural Resources and Costilla Energy Renegotiate Property Sale; Pioneer Announces 1999 Capital Budget and Cost Reduction Programs and Anticipates Impairments DALLAS, TEXAS--Pioneer Natural Resources Company ("Pioneer") today announced that it has renegotiated its previously announced agreement for the sale of certain oil and gas properties to Costilla Energy, Inc ("Costilla"). The new agreement provides Costilla with an exclusive and irrevocable option to purchase the same oil and gas properties from Pioneer. Costilla paid Pioneer an option fee of $41 million, consisting of $25 million in cash, $13 million in Costilla common stock, and $3 million of properties for the exclusive option to purchase from Pioneer, on or before March 31, 1999, the same oil and gas properties for $294 million. The effective date of the new agreement has been moved from October 1, 1998 to January 1, 1999. Pioneer will use the proceeds from the sale of the option and the properties to retire debt. Scott D. Sheffield, President and CEO, stated, "We're clearly disappointed in the delay, but considering current market conditions, the new agreement is advantageous to both Pioneer and Costilla. The new agreement reflects Costilla's continued desire to own these properties." "While we would like to close this transaction and pay down our debt, it's not a necessity. Retaining these properties has little impact on the Company's net asset value and is accretive to 1999 cash flow per share. The cash flow from the properties should more than cover the interest expense associated with the debt retained. The properties have generated about $65 million of operating cash flow during 1998. Capital Budget Allows for Debt Retirement Pioneer plans a capital budget of approximately $100 million in 1999 and will utilize the remainder of discretionary cash flow to retire debt. With this limited capital program, Pioneer expects to produce 56-60 million barrels oil equivalent (MMBOE) in 1999, including the full year's production from properties under agreement to be sold to Costilla in March. With long-lived reserves, Pioneer is well positioned to weather extended periods of low commodity prices. Long-lived reserves require less capital for reserve replacement. The Company has also taken steps to protect cash flow by aggressively hedging 1999 gas production. Over 310 million cubic feet (mmcf) of gas per day is under hedge contracts that provide protection against NYMEX equivalent pricing below $2.30 per mcf. In 1999, Pioneer plans to invest approximately $75 million in exploitation projects. These projects will focus on gas development in Canada, the U.S., and Argentina. Pioneer's 1999 exploration program will absorb considerably less capital, estimated at $25 million. The exploration base has now been established, allowing Pioneer opportunity to focus on analysis, ranking and timing of prospects. South Africa, Gabon, and the Gulf Coast transition zone have been targeted for comprehensive studies. Exploratory drilling will be concentrated in the Gulf of Mexico and the onshore Gulf Coast area. Pioneer will participate with experienced partners in one or two wells in the Gulf of Mexico deep-water Mississippi Canyon Block 305. The first well is expected to spud on January 1 and will take 45-60 days to drill. Two additional wells are planned onshore in the Gulf Coast area or in East Texas where several shallower exploration prospects defined by our large 3-D database offer opportunity. Cost Reduction Programs Pioneer continues to focus on reducing costs. Cost reductions related to a corporate restructuring were announced in February. In November, the Company initiated a second cost reduction program to further adapt to low commodity prices. During 1998, salaries among senior officers have been reduced, several officer positions have been eliminated, 350 employees have been terminated and operations are being centralized. General and administrative expenses are expected to decline to approximately $40 million or $.70 per BOE in 1999 from $1.30 per BOE a year ago. Lease operating expenses are expected to decline 5-10%. Restructuring costs will be included in non-recurring charges of approximately $20 million in the fourth quarter and $3 million in the first quarter of 1999. Impairments Anticipated Under Current Commodity Price Outlook Pioneer is anticipating a non-cash charge to fourth quarter earnings attributable to a writedown in the book value of its properties and deferred tax assets. While the exact amounts of the after-tax impairments have not yet been determined, they could be as much as $500 million including about $225 million of net operating loss carryforwards that will not be utilized under the current commodity price outlook. Under stronger commodity prices, the net operating loss carryforwards could be utilized in future periods. President's Comment "Protecting long-term net asset value in a highly volatile business and pricing environment is not easy," stated Scott Sheffield. "But Pioneer's long-lived reserves in the Hugoton gas field and the Spraberry oil field represent about 60% of the Company's total reserves and will continue to produce for the next 40 years. With the benefit of these long-lived reserves and a commitment to rapidly reduce debt through careful capital allocation, and the divestiture of at least $500 million of properties, Pioneer will weather this down-cycle." Headquartered in Dallas, Pioneer is one of the largest independent exploration and production oil and gas companies in North America, with major operations in the United States, Canada and Argentina.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:20:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Sunfire Energy Increases Production / Announces Year-End Results CALGARY, Dec. 17 /CNW/ - SUNFIRE ENERGY CORPORATION'S financial results for the year ending July 31, 1998 are as follows: 1998 1997 ----------------------------- Production Crude Oil (Bbls/d) 10 34 Natural Gas (Mcf/d) 1,233 1,038 Undeveloped Land (Net Acres) 32,714 24,540 Gross Revenue, less royalties $ 1,082,795 1,228,107 Cash flow from Operations $ 699,506 740,034 Per Share $ 0.139 0.176 Net income $ 130,547 205,545 Per Share $ 0.026 0.049 Capital Expenditures $ 1,362,485 1,292,274 Working Capital (Deficiency) $ 228,026 (443,976) Bank Debt $ Nil 18,825 Number of Common Shares Outstanding 5,491,090 4,206,090 Revenue, crude oil production and cash flow were all impacted by disposition of the remaining oil properties. Operating costs improved by 40% from $0.56/Mcfe to $0.34/Mcfe due to sale of high cost oil properties. The company drilled a total of 5 wells (1.4 net) during the year resulting in 3 successful gas wells which were placed on production prior to year-end. Subsequent to year-end, Sunfire has accomplished the following: - Completed the acquisition of 3 natural gas properties - Drilled 4 (2.8 net) successful gas wells - Recompleted and completed 4 existing gas wells - Equipped and tied-in a total of 8 wells This activity has resulted in a 114% increase in gas production from 1.4 MMcf/d to 3 MMcf/d. In addition to the field activity, Sunfire has fixed gas prices at an average of $2.56/Mcf (average price in recent fiscal year - $2.03/Mcf) for the remainder of the contract year on 60% of available spot gas. The combination of increasing gas volumes and attractive gas prices should significantly enhance Sunfire's cash flow in 1999. The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:28:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / BelAir Energy Announces Deep Test Discovery At Kakwa CALGARY, Dec. 17 /CNW/ - BelAir Energy Corporation announced today that the deep test well in the Kakwa area of northwestern Alberta (Lsd 15 33-61-5 W6M) in which BelAir is a working interest participant, has been cased. The operator is preparing to move a service rig on to the well to commence completion and flow testing operations. BelAir has a five per cent working interest in the subject well. The Kakwa 15-33 well has encountered a highly fractured Wabamun formation and is expected to be a high productivity gas well, similar to the Chevron Musreau well located in 6-25-62-6 W6M, approximately five miles away. The Chevron well has produced over 4 BCF of sweet gas since coming on stream in November, 1997. The Chevron well has produced at rates around 20 mmcfpd, higher production apparently being limited by plant capacity. In the Kakwa 15-33 well, volumetric reserves are difficult to determine because of the fractured nature of the reservoir. The pending production flow test will aid in determining the actual reserve size. After completion and testing, the well can be tied in to the ANG system through a short 600 metre tie-in. Although production rates will be initially limited by flowline capacity, production history will substantiate well productivity and reserve size that could justify a higher capacity tie-in. According to BelAir President, Victor M. Luhowy, ''This well will have very positive results for BelAir because of its potential productivity and reserve. Also, we can generate cash flow almost immediately. Involvement in this Kakwa discovery is consistent with BelAir's strategy of focusing on projects that can generate cash flow very quickly after initial investment. In this project, we will realize cash flow within one year of spudding the discovery well.'' BelAir Energy Corporation is based in Calgary and is involved in the exploration and exploitation of petroleum reserves in Western Canada. BelAir is listed on The Alberta Stock Exchange and trades under the symbol ''BGY''.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:31:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Endeavor Resources Commences Namaka Drilling Program CALGARY, Dec. 17 /CNW/ - ENDEAVOUR RESOURCES INC. (ASE-ERU) is pleased to announce that on December 9, 1998 at 19:00 hours it commenced drilling the first of three wells in the Namaka area which is located in Southeastern Alberta. All three are slant wells targeting the Basal/Belly River formation. These wells will be tied into existing facilities in the first quarter of 1999 and are anticipated to add an additional 800 mcf/d to the Company's daily production. $456,000 Raised to Date in Flow-Through Share Offering ------------------------------------------------------ Endeavour announces that to date, it has raised $456,000 from the issuance of 3,040,000 flow-through common shares. The private placement is expected to raise $1.5 million through the issuance of 10M flow-through shares at $0.15 per share. Proceeds from the offering will be used to fund exploration and development expenditures similar to the program announced today. Endeavour will renounce to subscribers Canadian exploration expenses equal to the subscription amount of the flow-through common shares. Endeavour is a Calgary-based oil and gas company actively engaged in the exploration and development of oil and natural gas in Canada. Endeavour is listed on the Alberta Stock Exchange (ASE) with shares trading under the symbol ''ERU''.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:36:00 AM
From: Kerm Yerman	Respond to of 15196

ACQUISITIONS - MERGERS / Q Energy Announces Acquisition CALGARY, ALBERTA--A group led by directors, officers and employees of Q Energy Limited (the "Company") has acquired from Windsor Investments S.A., a subsidiary of Windsor Energy Corporation, in a private transaction, 3,557,332 shares (19.25 percent of the outstanding shares) of the Company. The shares have been acquired by each member of the Purchasing Group for investment purposes. After giving effect to this acquisition, the members of the Purchasing Group own or control 7,437,978 shares of the Company in aggregate. Members of the Purchasing Group, acting independently, may from time to time purchase additional shares or sell shares of the Company, depending on prevailing economic and market conditions.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:40:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Denbury Resources Inc. - Definitive Agreement Signed for $100 Million Investment DALLAS, TEXAS--Denbury Resources Inc. (NYSE:DNR) (TSE:DNR) announced that it has entered into a definitive agreement with its largest shareholder, the Texas Pacific Group ("TPG"), with regard to the previously announced $100 million equity investment in the Company by TPG. Pursuant to the agreement, an affiliate of TPG has agreed to purchase 18,552,876 common shares at $5.39 per share for an aggregate consideration of $100 million. Among other things, closing of the transaction is conditioned upon shareholder and regulatory approval and amendment of the existing bank credit facility. As a result of this transaction, TPG's ownership will increase from approximately 32 percent to 60 percent of the Company. Following the Securities and Exchange Commission and The Toronto Stock Exchange review of proxy soliciting materials which are expected to be filed shortly, the Company anticipates that a shareholder meeting will be held in March 1999 with closing directly thereafter. Although the proceeds will initially be used to reduce bank indebtedness, the Company plans to ultimately use the funds for oil and gas property acquisitions to take advantage of the opportunities being created by the current low commodity price environment. Denbury is a Dallas-based independent oil and gas company engaged in acquisitions, development and exploration activities primarily in the states of Louisiana and Mississippi. This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties detailed in the Company's SEC reports, including the reports on Form 10-Q. Actual results may vary materially.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:42:00 AM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Harbour Petroleum - Hearing Rescheduled CALGARY, ALBERTA--The hearing of Harbour's application to set aside the appointment of the Interim Receiver and its Objection to the Petition for receiving order brought about by TransCanada Energy Ltd. has been rescheduled for January 21, 1999. This is the earliest possible time available that will enable Harbour to vigorously prepare and file a Brief in response to TransCanada's Brief which was received at 5:00 p.m. on December 14, 1998. In the interim, Harbour continues to actively pursue farmout arrangements with joint venture partners on its existing exploratory properties. Two agreements have been reached, one at Goose West and the other at Pica. Both are expected to be drilled this winter. Further opportunities exist at Wrentham and at Nevis, among others. Harbour Petroleum Company Limited has 27,882,847 outstanding common shares and is listed on The Toronto Stock Exchange - symbol HRP.

To: Kerm Yerman who wrote (14344)	12/17/1998 11:47:00 AM
From: Kerm Yerman	Read Replies (24) \| Respond to of 15196

ENERGY TRUSTS - MISC / Viking Energy Royalty Trust Acquires Propewrty VIKING ENERGY ROYALTY TRUST COMPLETES MAJOR OIL PROPERTY ACQUISITION CALGARY, ALBERTA-- Further to its announcement of December 9, 1998, Viking Energy Royalty Trust is pleased to report it has completed a significant acquisition of oil properties in a new core area in Central Alberta. Viking and a 50% partner acquired the properties from a major oil company for $25.3 million before adjustments. The transaction was funded through bank financing. The partner will operate the properties Viking's net production from the properties will be in excess of 2,600 BOE/d, 80% of which comes from the Bellshill Lake unit. This will increase Viking's 1999 forecast production by more than 54%, and amounts to an average cost of $9,700 per daily flowing barrel. The acquisition will increase Viking's established reserves by approximately 6.0 million BOE, as determined by an independent engineer, at a cost of $4.20 per BOE. It also results in Viking replacing its 1998 production by more than 280%. The Trust has identified numerous exploitation opportunities from existing 3-D seismic and believes the properties have significant development and operating efficiency potential. "This acquisition represents a confident step for the Trust, which will add value for Viking Unitholders in every reasonable crude oil pricing environment," said Kirk Purdy, President of Viking Management Ltd. Viking Energy Royalty Trust is an open-end investment Trust that generates income from long-life oil and natural gas producing properties in Saskatchewan and Alberta. The beneficiaries of Viking are the holders of the Trust Units who receive monthly distributions of the cash flow from the income. The Units are listed on The Toronto Stock Exchange (TSE) under the symbol "VKR.UN". Viking is managed by Viking Management Ltd., a Calgary based company. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.