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

To: Kerm Yerman who wrote (14452)	12/22/1998 3:19:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / NRI On-Line Inc. To be Acquired NRI ON-LINE INC. TO BE ACQUIRED BY GEOPHYSICAL MICRO COMPUTER APPLICATIONS (INTERNATIONAL) LTD. Date: 12/21/98 4:26:13 PM Dateline: CALGARY, ALBERTA Stock Symbol: NDA NRI On-Line Inc. ("NRI") today announced that it has entered into an acquisition agreement with Geophysical Micro Computer Applications (International) Ltd. ("GMA") pursuant to which it has agreed to make an offer to purchase all of the outstanding common shares of NRI on the basis of one common share of GMA for each six common shares of NRI. NRI shareholders will hold approximately 19% of the issued and outstanding shares of the combined company. NRI is a high volume virtual data storage and management company listed on The Alberta Stock Exchange under the trading symbol "NDA". Through its open system solution, the company archives, manages and delivers integrated data on-line over wide area communications networks. Ron Newman, President and Chief Executive Officer of GMA stated, "one of the essential needs of the oil and gas industry today is integration of data throughout multi disciplinary teams and the desire to have this data available when needed. Through this acquisition, GMA will supply the technology to integrate on-line data with exploration software systems, and will promote workflow integration across multidisciplinary teams, thus increasing productivity." Brett Kondruk, President of NRI stated, "this ensures that NRI will have adequate financial, technical and marketing resources to fully exploit our technology. GMA has a strong financial base and a world wide presence. This is a terrific opportunity." GMA's obligation to make the offer is subject to there being no material adverse change occurring in the assets, liabilities, business, operations or capital of the NRI and NRI having received the consent of all relevant authorities to the release from escrow or the transfer to GMA within escrow of all NRI Shares which are subject to escrow so that such NRI Shares may be tendered under the offer. The offer will be conditional on the deposit of not less than 90% of NRI's common shares and other conditions customary in these types of transactions. Certain directors, officers and principal shareholders of NRI holding in aggregate approximately 2,418,140 of the common shares of NRI (approximately 25.5% of the issued and outstanding common shares of NRI), have agreed to tender their shares pursuant to the offer and have entered into lock-up agreements with GMA in connection therewith. It is anticipated that the offer will be mailed to shareholders of NRI by the end of January. If the offer is successful, GMA intends to take steps to acquire 100% of the common shares of NRI. The common shares of GMA have not been and will not be registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration thereunder. GMA is a developer and supplier of geological, geophysical and petrophysical computer-aided exploration (CAEX) software products. The CAEX software allows geoscientists to interpret and synthetically model various subsurface characteristics of the earth enabling exploration staff to reduce non-productive drilling and thereby reduce the overall risk and cost of hydrocarbon discovery and exploitation.

To: Kerm Yerman who wrote (14452)	12/22/1998 3:26:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Geophysical Micro Computer Applications (International) Ltd. Acquires NRI On-Line Inc. Date: 12/21/98 3:47:09 PM Dateline: CALGARY, ALBERTA Stock Symbol: GMA Geophysical Micro Computer Applications (International) Ltd. ("GMA") today announced that it has entered into an acquisition agreement with NRI On-Line Inc. ("NRI") pursuant to which it has agreed to make an offer to purchase all of the outstanding common shares of NRI on the basis of one common share of GMA for each six common shares of NRI. GMA is expected to issue approximately 1.6 million common shares to acquire all of the outstanding NRI common shares. NRI is a high volume virtual data storage and management company listed on The Alberta Stock Exchange under the trading symbol "NDA". Through its open system solution, the company archives, manages and delivers integrated data on-line over wide area communications networks. Ron Newman, President and Chief Executive Officer of GMA stated, "One of the essential needs of the oil and gas industry today is integration of data throughout multidisciplinary teams and the desire to have this data available when needed. Through this acquisition, GMA will supply the technology to integrate on-line data with exploration software systems, and will promote workflow integration across multidisciplinary teams, thus increasing productivity." GMA's obligation to make the offer is subject to there being no material adverse change occurring in the assets, liabilities, business, operations or capital of the NRI and NRI having received the consent of all relevant authorities to the release from escrow or the transfer to GMA within escrow of all NRI Shares which are subject to escrow so that such NRI Shares may be tendered under the offer. The offer will be conditional on the deposit of not less than 90% of NRI's common shares and other conditions customary in these types of transactions. Certain directors, officers and principal shareholders of NRI holding in aggregate approximately 2,418,140 of the common shares of NRI (approximately 25.5% of the issued and outstanding common shares of NRI), have agreed to tender their shares pursuant to the offer and have entered into lock-up agreements with GMA in connection therewith. It is anticipated that the offer will be mailed to shareholders of NRI by the end January. If the offer is successful, GMA intends to take steps to acquire 100% of the common shares of NRI. The common shares of GMA have not been and will not be registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration thereunder. GMA is a developer and supplier of geological, geophysical and petrophysical computer-aided exploration (CAEX) software products. The CAEX software allows geoscientists to interpret and synthetically model various subsurface characteristics of the earth enabling exploration staff to reduce non-productive drilling and thereby reduce the overall risk and cost of hydrocarbon discovery and exploitation. For further information, please contact: Ron E. Newman, President & CEO, or Garry Ramsden-Wood, Investor Relations @ 403-261-4025 Internet: gmacalgary.com The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

To: Kerm Yerman who wrote (14452)	12/22/1998 3:39:00 AM
From: Kerm Yerman	Respond to of 15196

ACQUISITIONS - MERGERS / Fortune Energy Announces that Fortune Shareholders Approve Amalgamation FORTUNE ENERGY INC. TSE SYMBOL: FEY CALGARY, ALBERTA--FORTUNE ENERGY INC. ("Fortune") announced today that the shareholders of Fortune have voted in favour of the previously announced Amalgamation between Fortune and 798374 Alberta Ltd. ("Newco"). At the Special Meeting of Shareholders held today, 99.6 percent of the Fortune Shareholders, excluding Related Parties, entitled to vote in person or by proxy at the Meeting, voted in favour of the Amalgamation. Closing of the transaction took place immediately following the Meeting and as a result all of the issued and outstanding securities of Fortune held by Non-Related Parties were exchanged for preferred shares of the newly amalgamated company which immediately following the Amalgamation made effective on December 18, 1998 under the provisions of the Business Corporations Act (Alberta) were redeemed for $0.80 in cash per share.

To: Kerm Yerman who wrote (14452)	12/22/1998 3:56:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Saudi Eyes Painful Budget Cuts As Oil Price Falls DUBAI, Dec 20 - Saudi Arabia, the world's biggest oil exporter but financially battered by the recent plunge in prices, is running out of easy ways to cut spending and is bracing for painful new reforms, economists say. As the government draws up the 1999 budget, there are few signs of a quick recovery in oil markets and economists say this year's actual deficit could soar to 45 billion riyals ($12 billion), more than double the state's original forecast. They said the need to open up the traditionally closed economy has been shifted up the agenda with the collapse in the price of oil, by far the state's biggest source of revenue. "It's making the kingdom think of reform in sectors which are very difficult," Prajapati Trivedi, resident World Bank economist in Riyadh, told Reuters by telephone. The government has already begun restructuring the power industry with plans to raise some electricity prices and is spinning off the telecommunications sector from the state -- unusually bold moves in the conservative kingdom. To treat a more immediate cash crunch, the government ordered spending cuts halfway through 1998, such as halting some projects and contracts, as oil prices slid to 12-year lows. A top banker in the kingdom said spending on foreign defence contracts had been slashed by $2 billion-$3 billion to about $5 billion-$6 billion in 1998, and more cuts were likely in 1999. Cuts included equipment deals and operation and maintenance contracts. The kingdom is a major arms market for foreign firms. The economists said new measures to trim the deficit in 1999 could involve raising fuel prices and further state sell-offs. "Some of these decisions are tough," said Saudi American Bank economist Kevin Taecker, but they were also "quite positive" because they would bring private sector-led growth. In 1998, the government budgeted spending of 196 billion riyals against revenues of 178 billion riyals, leaving a deficit of 18 billion riyals. Riyadh does not reveal what oil price it uses as a basis, but economists have suggested $14-16 a barrel for Saudi crude, which trades below benchmark Brent. The kingdom has output of more than eight million barrels per day. Some speculate that the 1999 budget would be based on a price of less than $14 a barrel. With a barrel of Brent touching $9.60 in December, some unofficial forecasts said the actual deficit could hit 45 billion riyals, other estimates suggest 30 billion riyals. A Saudi British Bank report said that with a moderate oil price rise next year -- far from certain as producers seem paralysed about action to shore up the oil market -- 1999's deficit could be 32 billion riyals. Taecker said reining in spending could reduce 1999's shortfall to 15 billion riyals. Another Riyadh economist said spending cuts alone in 1999 would not set the economy on the right road: "This would be a short-term medicine, but what we need is a long-term operation." He said the government had already resorted to some easy options, such as announcing price rises for big electricity consumers while leaving smaller consumers untouched. "Unfortunately, our options are running out in this area," he said, adding that mobilising the $200 billion private Saudi investors are said to hold overseas but reluctant to repatriate was the key to boosting state revenues in the long term. The government has little room for manoeuvre for cuts as state wages make up a big chunk of the budget. Some analysts say cuts to the lavish welfare state are sensitive as it could upset the citizens' traditional trade-off of political power in the desert monarchy for a comfortable economic environment. "We will do our utmost so as not to overburden our citizens -- especially those of limited or medium income," Crown Prince Abdullah told a newspaper in November. But the heir to the Saudi throne also told Gulf Arab leaders in December in unusually frank comments: "We must all get used to a different way of life, which does not stand on total dependence on the state." Bankers said the state, wary of foreign borrowing, could finance its budget shortfall internally. A senior banker said local banks could fund the deficit even if it hit $15 billion.

To: Kerm Yerman who wrote (14452)	12/22/1998 3:59:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Kuwait Orders More Spending Cuts On Weak Oil Price KUWAIT, Dec 20 - Kuwait on Sunday ordered further state spending cuts to contain a deficit which has grown amid weak world oil prices and few signs of imminent improvement. The government called after a weekly meeting "for the need to intensify efforts and sincere work aimed at rationalising spending and safeguarding the country's wealth in view of the decline in oil prices". Kuwait, which has requested parliamentary approval to borrow and withdraw further from reserves to cover the growing budget shortfall, had previously ordered cuts in the 1998/99 (July- June) budget of 4.362 billion dinars ($14.47 billion). The cabinet said in the statement which was sent to Reuters that the head of the state-owned Kuwait Investment Authority (KIA) Ali al-Bader, also attended Sunday's meeting to discuss the country's investment policy and state reserves. Kuwait has been a major global investor for several decades but its KIA fund is currently valued at around $50 billion, down from more than $100 billion after paying for the huge costs of the U.S.-led 1991 Gulf War to end Iraq's seven-month occupation. The cabinet "expressed appreciation for KIA efforts to safeguard state reserves, developing them and investing them to achieve the desired aim". State reserves are a secret in Kuwait but officials earlier told Reuters KIA was not over exposed in Asia when the economic crisis hit Far Eastern markets last year. According to figures obtained by Reuters, KIA has some 14.5 billion dinars under management including some 10.5 billion dinars invested in global equity markets. The rate of return on KIA's investments in 1997 was put at around 17 percent. KIA's funds include 1.5 billion dinars in global bonds and 1.5 billion dinars invested in real estate. The Central Bank, according to the figures, has some one billion dinars in foreign reserves while other institutions like Kuwait Petroleum Corp (KPC), one of the world's 10 largest oil firms, also have several billion dinars invested abroad or deposited with banks. After excluding bad debts and loans, state reserves are valued at more than 20 billion dinars. The current budget carries a projected net deficit of 1.919 billion dinars and a gross deficit of 2.163 billion dinars. Kuwait has two deficit figures because the state is obliged by law to deposit 10 percent of total revenue in the KIA-managed fund although the government has also asked parliament to drop this obligation in years of deficit. Kuwait controls slightly less than 10 percent of the world's proven oil reserves, lasting it more than 100 years at the current production level of 1.98 million barrels per day. Oil revenue in the current budget was put at 1.894 billion dinars and non-oil income was projected at 550 million dinars. Forecast oil revenue is almost half of the oil income in 1997/98 when Kuwaiti crudes averaged around $14.4 a barrel. Kuwaiti crudes closed on Friday at $9.37, $7.17 and $6.45. The government has also promised to present parliament with an economic reform package aimed at cutting obligations in the welfare state of some 750,000 Kuwaitis to tackle the drop in world oil prices. Part the reforms included Sunday's approval by a parliamentary committee of a foreign investment law aimed at attracting funds into the state-dominated economy for further discussion by the full parliament. The commitee said the bill is just one of many aimed at "restructuring the economy, including privatisation and employment laws, to enable the country to exist from the economic tight spot it is facing".

To: Kerm Yerman who wrote (14452)	12/22/1998 4:01:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Japan Firm To Start Oil Output From Alberta TOKYO, Dec 21 - Japanese oil exploration firm Canada Oil Sands Co Ltd plans to start production from oil sands in Canada's Alberta next April, shareholder Japan Petroleum Exploration Co (JAPEX) said on Monday. Initial production at its oilfield in northern Alberta's Athabasca will total around 2,000 barrels per day (bpd), a JAPEX official said. The output is scheduled to rise to 6,000 bpd by the end of the year, he said. The 2,000-square-km field is estimated to hold more than 10 billion barrels of extra heavy oil, he added. Canada Oil Sands is owned 66.9 percent by state-run Japan National Oil Corp and 6.2 percent by JAPEX, with the remainder held by about 70 Japanese companies.

To: Kerm Yerman who wrote (14452)	12/22/1998 4:05:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Northern Border Pipeline Company Completes The Chicago Project HOUSTON, Dec. 21 /PRNewswire/ -- announced today that its Chicago Project was completed on Sunday, December 20 and began accepting nominations today for initial gas deliveries Tuesday, December 22. The Chicago Project provides an additional 700 million cubic feet per day (MMcf/d) of transportation capacity for new Canadian gas supplies to U.S. markets and extends Northern Border's delivery service to the Chicago market area. Northern Border now will be capable of providing approximately 20 percent of the natural gas consumed in the Chicago area and will provide new service to the rapidly developing Midwest market hub. Construction of the project began in 1997 and involved approximately 390 miles of 36- and 30-inch diameter pipe and the addition of 303,500 horsepower of compression. ''Completion of The Chicago Project marks the culmination of over 18 months of intense effort by more than 4,000 construction workers in six states as well as dedicated company employees all across our pipeline system,'' said Larry L. DeRoin, chairman of the Northern Border Management Committee. ''We enter the Chicago marketplace with supplies of competitively priced Canadian natural gas, well positioned to serve both existing and expanded markets in the U.S.'' Northern Border Pipeline Company is a general partnership which owns and operates a 1,213-mile interstate pipeline that transports approximately 25 percent of all Canadian gas imported into the U.S. The Chicago Project increases Northern Border Pipeline's capacity from 1,675 to 2,375 MMcf/d. Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company. The remaining 30 percent interest is owned by subsidiaries of TransCanada PipeLines Limited.

To: Kerm Yerman who wrote (14452)	12/22/1998 4:09:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Arctic Cold Front Pushes Natural Gas Supplies To The Limit Cal-ISO Responds with Stage Two Emergency With natural gas in short supply and icy cold temperatures continuing in the Western United Sates, the California Independent System Operator (Cal-ISO) called for a Stage Two Emergency at 7:20 a.m. today, Monday, December 21, 1998, triggering the reduction of power demand on the state's transmission system. Frigid cold in the Northwestern states extending down into Northern California is temporarily causing shortages of natural gas due to heating demands. The shortfall is affecting the supply of fuel needed to generate electricity at power plants in California, reducing the amount of backup power available. Additional problems have been created by congestion on California's transmission lines as the Southwest states, which are not suffering from the arctic cold, send surplus electricity north via California to the Northwest where power is deficient. A Stage Two Emergency is declared when operating reserves dip below five percent or are expected to within the next two hours. At this stage, the Cal-ISO asks the state's utilities to implement their load management programs. At this point, only customers in Northern California, Pacific Gas & Electric's service area, are affected. The voluntary programs rely on commercial and industrial customers who receive discounted electricity rates to voluntarily curtail their electricity use in order to lower the state's demand for power. The Cal-ISO's Electrical Emergency Plan (EEP) is part of the state's enhanced reliability standards created by landmark legislation Assembly Bill 1890, which restructured California's electricity industry. Cal-ISO's EEP is activated when operating reserves fall below seven percent. That's when a Stage One Emergency is initiated to advise the public of potential power shortages and to ask all customers to conserve electricity in order to ensure there will be enough power to meet future demand. For more information on Cal-ISO's EEP, please visit our Internet home page at www.caiso.com. Cal-ISO is chartered by the state to manage the flow of electricity along the long-distance, high-voltage power lines that make up the bulk of California's transmission system. The not-for-profit public-benefit corporation assumed the responsibility in March, 1998, when California opened its energy markets to competition and mandated the investor-owned utilities turn their private transmission power lines over to the Cal-ISO's public power grid. The mission of the Cal-ISO is to safeguard the reliable delivery of electricity and ensure equal access to the state's ''electron highway'', which spans 124,000 miles or three-quarters of the state. The Cal-ISO is the second-largest control area in the U.S. and the fifth largest in the world. Its computerized control center is located in Folsom, 22 miles from the capital city of Sacramento.

To: Kerm Yerman who wrote (14452)	12/22/1998 4:19:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

IN THE NEWS / Petro-Canada To Spend Nearly $1.1 Billion Next Year Canadian Press Petro-Canada will spend nearly $1.1 billion to find and produce oil and gas in 1999, down only modestly from this year despite plunging world oil prices. The big Calgary energy company said Monday its board had approved a plan to spend $1.075 billion next year, about five per cent below its 1998 spending. The oil giant said it will finance its 1999 spending through internal cash flows and money raised from the sale of non-core assets. "The capital plan reflects our confidence in Petro-Canada's growth potential and the long-term outlook for our industry," company president Jim Stanford said in a release. "We will manage our finances conservatively in the current low-commodity-price environment, but we have the financial strength to continue a strong program of investment in our best growth opportunities in order to build shareholder value." Many of the world's oil companies have been drastically cutting capital spending for next year to conserve cash while oil prices hover at their lowest levels since the mid-1980s Oil prices have dropped about 40 per cent this year and plunged to fresh 12-year lows Monday following U.S. President Bill Clinton's decision to end air strikes on Iraq. Benchmark Brent crude oil futures dropped 37 cents to $9.61 US in London. Petro-Canada said its spending next year will focus on its East Coast operations, particularly Terra Nova, Hibernia and other Grand Banks properties, as well as its share of the Syncrude heavy oil project in northern Alberta. Although the company will spend less on its refining and marketing business next year, it expects its gasoline station network and refineries to contribute strongly to overall financial performance because of past efficiency-improving investments. In breaking down its capital plans, Petro-Canada said it will: Spend $400 million on the Grand Banks, off the east coast of Newfoundland. With Hibernia now producing crude, investment will focus on developing the Terra Nova field where commercial production is expected to begin late in the year 2000. Another $85 million will be used to finance Petro-Canada's share of exploration drilling at Hebron, another promising field off Newfoundland. Cut spending in Western Canada to $260 million from $355 million forecast for this year. About $100 million will be spent on exploration and the rest on development, with a strong focus on natural gas. Petro-Canada will also spend $95 million in the Syncrude oil sands mining operation and other nearby heavy-oil projects. **Cut capital spending in refining and marketing to about $220 million -- belowlast year -- including about $50 million to clean up pollution. Petro-Canada shares fell 10 cents to $16.75 on the Toronto stock market Monday.