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

To: Kerm Yerman who wrote (14609)	1/4/1999 8:44:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Petroflow Announces Further Chamberlain Success and Six Months Results CDN SYMBOL: PFNG.A JANUARY 4, 1999 HUBBARDS, NOVA SCOTIA--Petroflow Energy Ltd. ("Petroflow") says that the second horizontal oil well at its Chamberlain Project near Edmonton, Alberta, was drilled, completed, and placed on production in December. The well encountered excellent reservoir and is presently producing at a rate of approximately 820 bbl. oil per day. The full production capability of the well has not yet been determined due to capacity limitations of the recently constructed treater and battery facilities which process fluids from the two horizontal wells completed to date on the property. Planning is underway to significantly increase the capacity of this facility. A recently drilled water disposal well is now operational. This well also tested the natural gas potential of the Ostracod formation on Petroflow's lands which was found to be non-economic. Petroflow's current oil production from the Chamberlain Project is approximately 121 bbl./day (net). The Project, in which Petroflow holds a 12.5 percent working interest, is operated by Tier One Energy Corp. Petroflow and its partners recently acquired the petroleum rights to a further 1,440 acres of lands adjoining its original Chamberlain acreage and additional drilling locations have been identified. Petroflow also says that it has issued its unaudited consolidated interim financial statements for the six month period ended October 31, 1998 together with comparatives for the six months ended October 31, 1997. For the six months ended October 31, 1998, Petroflow had revenue of $102,144, being a 323 percent increase over revenue of $24,166 for the six months ended October 31, 1997. Production, administrative and other expenses of $77,215 represented a 44.7 percent reduction from $139,560 for the same period in the previous year. Cash flow for the six months ended October 31, 1998 was $38,190 compared with cash flow of ($115,444) in the previous corresponding period while net income was $24,929 compared with a loss of $115,444 in the preceding corresponding period. Petroflow has 16,239,062 Class A subordinate voting shares and 2,625,013 Class B multiple voting shares issued and outstanding and expects that its financial results will show significant comparative growth over the balance of its current fiscal year. Petroflow is an emerging junior oil and gas company, the Class A shares of which are quoted and traded on the Canadian Dealing Network under the symbol "PFNG.A"

To: Kerm Yerman who wrote (14609)	1/4/1999 9:02:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Westminster Closes Private Placement TSE SYMBOL: WML JANUARY 4, 1999 CALGARY, ALBERTA--Westminster announces it has closed its previously announced private placement of "flow-through" common shares at $6.75 per share. Net proceeds of $6.76 million will be used to fund ongoing exploration expenditures. Westminster Resources Ltd. is a Canadian company engaged in exploration, development and production of natural gas. Westminster's common shares are listed on The Toronto Stock Exchange under the trading symbol "WML". Westminster Resources's News Releases can be accessed electronically through Canadian Corporate News website at www.cdn-news.com

To: Kerm Yerman who wrote (14609)	1/5/1999 7:54:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Orion Energy Holdings Rejects PrimeWest's Offer ORION DIRECTORS REJECT PRIMEWEST OFFER TO UNITHOLDERS CALGARY, Jan. 4 /CNW/ - OET.un - TSE - Orion Energy Holdings Inc. today announced that on December 31, 1998, the Board of Directors of Orion Energy Holdings Inc. mailed their Directors' Circular in response to PrimeWest's Offer to Unitholders. The Board unanimously and strongly recommends that holders of Orion Units REJECT the PrimeWest Offer and NOT tender their Trust Units to the Offer. The reasons for the recommendation to REJECT include, among others: - Orion's net asset value significantly exceeds the offer price. - The offer will definitely be dilutive to cash distributions to Orion Unitholders and substantially more dilutive than stated in the PrimeWest Offer. - A combination of PrimeWest and Orion will likely result in Unitholders paying higher overall management fees and higher general and administrative expenses to PrimeWest's manager than are currently paid to Orion's manager. - In contrast to Orion, PrimeWest has not provided updated engineering information respecting its oil and gas properties, nor has it been willing to disclose audited budgeted forecasts of 1999 distributable cash flow. Publicly available information indicates that the oil production operated by PrimeWest experienced sharp declines during 1998, which suggests that PrimeWest's oil reserves have been impaired from the last publicly announced reports of its independent engineers. The Board is concerned that if this is a reason for the combination, it is not beneficial to Orion Unitholders. The Board believes that it is crucial that Orion Unitholders have the benefit of current PrimeWest engineering information. - The offer is coercive and unfair and provides no compelling business case for Orion Unitholders. The Board notes that PrimeWest's manager will receive significant acquisition fees in respect of the combination of Orion and PrimeWest and that PrimeWest Unitholders are benefited by Orion's quality asset base. - The Board believes that Orion has superior quality assets in comparison to those of PrimeWest and that Orion's management team and not PrimeWest's team has the strongest ability to most effectively exploit and extract the maximum value from all of Orion's properties. - Griffiths McBurney & Partners, financial advisor to Orion, have delivered an opinion that the Offer is inadequate and unfair from a financial point of view to Orion Unitholders. Griffiths McBurney expects that the higher cost structure within PrimeWest and the significant costs associated with the proposed transaction will result in dilution to the cash distributions, which Orion Unitholders would otherwise receive on a stand alone basis. A conference call with Orion to review the REJECTION of the Offer will occur at 9:00 AM (Calgary time), Tuesday, January 5, 1999. To participate, call 1-888-832-0082; the reference reservation number is 4752(number sign). Orion Energy Trust is an open ended conventional oil and gas royalty trust trading on the Toronto Stock Exchange under the symbol OET.UN, with offices located in Calgary, Alberta and in Montreal, Quebec.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:00:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Pengrowth Corporation transfers $106 million of oil and gas facilities to Pengrowth Energy Trust Pengrowth Corporation currently expects that all distributions made to unitholders in 1998 will be non-taxable Pengrowth announces initial response from 15-33 and 5-08 horizontal injection patterns in Judy Creek A Pool Stock Symbol: PGF.UN, TSE.ME CALGARY, Jan. 4 /CNW/ - Pengrowth Corporation, as administrator of Pengrowth Energy Trust announced today that Energy Trust has acquired beneficial interests in certain oil and gas pipeline and processing facilities in the Judy Creek and Swan Hills areas from Pengrowth Corporation for consideration of $106 million funded out of cash retained by the Trust. Proceeds were applied by Pengrowth Corporation to reduce bank indebtedness. Pengrowth Corporation has leased the facilities from Pengrowth Energy Trust and will retain operatorship. The facilities transfer will increase Pengrowth's financial flexibility and tax efficiency. Pengrowth Energy Trust now anticipates that none of the distributions paid to unitholders during 1998 will be cash taxable. Based on current estimates, all of the 1998 distributions will be considered a return of capital and thus tax deferred. Pengrowth is also pleased to announce initial response has been observed from the Judy Creek horizontal miscible flood program which commenced injection on three patterns during the fourth quarter of 1998. Approximately 470 barrels per day of incremental oil is currently being produced by the horizontal injector well patterns at 15-33-63-10W5 and 5-08-64-10W5. The incremental production is expected to increase as the miscible flood is still in the early stages. Pengrowth will announce further details as the miscible flood develops more production history.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:05:00 AM
From: Kerm Yerman	Respond to of 15196

CORP. ANNOUNCEMENT / Ultra Petroleum Delisting From VSE ULTRA PETROLEUM TO TRADE EXCLUSIVELY ON TORONTO STOCK EXCHANGE DENVER, CO-- Ultra Petroleum (TSE: UP) today announced that it is no longer listing its shares for trading on the Vancouver Stock Exchange and its shares will trade exclusively on the Toronto Stock Exchange commencing January 4, 1999. "Our move to trade solely on Canada's largest stock exchange reflects our intention to increase awareness among a broader range of investors in Canada and the United States," says Marc Bruner, Chairman of Ultra Petroleum. "We were pleased with our long association with the Vancouver Stock Exchange and we want to acknowledge the important venture capital role that the Vancouver market has played in Ultra Petroleum's growth as a publicly-traded company." Ultra Petroleum is a Denver-based natural gas exploration and development company active in the Green River Basin region of Wyoming.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:12:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Grey Wolf Exploration Inc. Announces Drilling Results GREY WOLF EXPLORATION INC. - ANNOUNCEMENT CALGARY, ALBERTA-- Grey Wolf Exploration Inc. announces that drilling operations at the Deb Cho B-25 well on Grey Wolf's Ten Mile Island prospect in the Norman Wells area of the Northwest Territories, Canada have been completed. The well was drilled to a total depth of 785 metres and was plugged and abandoned as a dry hole. The Company is currently preparing to drill the second seismically identified prospect, the Deh Cho B-14. Drilling operations were also completed at the Chinchaga 15-36 well on the Slave Point Reef play in the Cranberry area of northwestern Alberta. The well was drilled to a total depth of 2,450 metres and was plugged and abandoned as a dry hole. The Company is currently preparing to drill the Chinchaga 10-27. Grey Wolf operates these prospects and owns 20% with its affiliate, Canadian Abraxas Petroleum Limited, owning the remaining 80%. Company officials indicated that both of the initial locations were stand-alone prospects and that the results would not impact the success of the ensuing exploratory tests.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:21:00 AM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Circle Energy Inc. Responds to Scorpion Press Release (23/12/98) & Nu-Sky Press Release (22/12/98) CALGARY, Jan. 4 /CNW/ - In a press release issued by Circle Energy Inc. (17/12/98 - Circle Seeks Court Ruling Re: Brazeau River) the Company stated that it ''learned that Nu-Sky and Scorpion had acquired additional interests in Sections 16 and 17 in June 1998. Circle is contending that this land falls within the AMI and that Circle should have had the right to participate in acquiring an additional 16.95% in Sections 16 and 17. Circle's current interest in elections 16 and 17 is 39.55%.'' A subsequent release issued by Scorpion 23/12/98, states ''The company (Scorpion) has successfully drilled its 16-16 natural gas well near its 13-15 well at Brazeau. Logs and drillstem tests indicate the well should produce at rates equivalent to the offsetting wells. Both of these are producing in excess of 10 mmcf/d gas each. Scorpion's interest in production from 16-16 before payout of a partners 300 per cent penalty interest will be 78.5 percent.'' The 13-15 well reference above is operated by Circle Energy. A release issued by Nu-Sky 22/12/98, states, ''Nu-Sky's interest in the production from 16-16 before payout of a partners 300 per cent penalty interest will be 21.5 per cent.'' Circle Energy is contending that it (Circle) is entitled to 56.5% of Sections 16 and 17 and that it is not on penalty for any percentage of the 16-16 well. As reported in the release dated 17/12/98 issued by Circle, a ruling by the courts on this matter is anticipated by the end of January 1999. Circle Energy holds oil and gas leases in Central Alberta, Saskatchewan, New Mexico and Texas. The Company's shares trade on The Alberta Stock Exchange under the symbol CEN.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:26:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Marengo Exploration Private Placement MARENGO EXPLORATION LTD. - ANNOUNCES THE CLOSING OF A PRIVATE PLACEMENT CALGARY, ALBERTA-- MARENGO EXPLORATION LTD. (ASE: MRO.A) is pleased to announce the closing on December 31, 1998 of a private placement of 650,000 Class A flow-through common shares at $1.00 per share to EnerVest Limited Partnerships, subject to appropriate regulatory approval. The funds, together with projected 1999 cash flow and an unused credit line of $500,000 will provide approximately $2,500,000 for Marengo's 1999 exploration and development activities. Marengo currently produces approximately 425 BOEPD, consisting of 100 BOPD and 3,250 MCFD.

To: Kerm Yerman who wrote (14609)	1/5/1999 8:31:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / PrimeWest Energy Trust Scores Success with Horizontal Re-entry Well in Kaybob Unit CALGARY, Jan. 4 /CNW/ - PrimeWest Energy Trust (PrimeWest) today announced successful results of a horizontal re-entry well that has doubled oil production in the Kaybob South Triassic Unit 2, located in west-central Alberta. The horizontal re-entry well, PWEI Unit 2 Kaybobs 15-13-62-20 W5, was drilled utilizing a previously suspended well bore to exploit a pocket of ''unswept'' oil. The pocket was identified by an extensive geological study and a computer simulation that modelled 20 years of water injection and oil production from the reservoir, both conducted by PrimeWest. Since being placed on production December 17, 1998, the Kaybob 15-13 well has been flowing at an average rate of over 2,300 barrels per day of clean oil and 2.3 million cubic feet per day of solution gas (for a total of over 2,500 barrels of oil equivalent per day). This represents approximately 500 barrels of oil equivalent per day net to PrimeWest's working interest. PrimeWest expects that this initial production rate will decline somewhat over the next several months, as is the case with most horizontal wells. Despite low oil prices, the well is expected to have a rapid payback of development cost -- sometime within the first quarter of 1999. This rapid payback results from both the high production rate and the high netback associated with new production under horizontal well incentives and Alberta royalty tax credits. In addition, 1999 per-barrel operating costs for the Kaybob South Triassic Unit are expected to fall significantly relative to those of 1998, due to the substantial increase in Unit 2 production. ''The technical success of this horizontal re-entry well fits right in with the PrimeWest strategy,'' said Kent MacIntyre, Vice Chairman and CEO of PrimeWest Energy Inc. ''We like to develop control through operatorship and then work properties aggressively to maximize value for our unitholders and partners. ''Using this approach, our team has steadily added to reserves and production - at a respectably low cost - and this is positive for current and future distributions.'' The 15-13 well is the first of a three-well horizontal re-entry program identified by PrimeWest in the Kaybob South Triassic Unit 2 to access areas of ''unswept'' oil reserves. PrimeWest has a 20.06 percent interest in the PWEI Unit 2 Kaybobs 15-13-62-20 W5 well and the Kaybob South Triassic Unit 2. Partners in the Unit also include: Marathon Canada Limited, 26.75 percent; Chevron Canada Resources, 23.25 percent; and Gulf Canada Resources Limited, 29.94 percent. PrimeWest is Canada's third-largest conventional oil and gas royalty trust, operating since 1996 in Alberta, British Columbia and Saskatchewan. An investment in PrimeWest provides unitholders with high-yielding income through tax-effective monthly distributions derived from oil and gas properties. PrimeWest's main objective is the continual enhancement of unitholder distributions through the cost-efficient, value-added operation of its portfolio and by seeking accretive acquisition and expansion opportunities on a selective basis. PrimeWest is unique among conventional oil and gas trusts in that it is the operator of 90 percent of its asset base. On December 11, 1998, PrimeWest announced offers to purchase all of the outstanding trust units of Starcor Energy Royalty Fund and of Orion Energy Trust. Under the terms of the offers, PrimeWest would issue 1.207 PrimeWest units for each Starcor unit, and 0.968 PrimeWest units for each Orion unit. These offers were mailed to holders of Starcor and Orion units on December 21, 1998, and are set to expire on January 12, 1999. Units of PrimeWest Energy Trust are traded on The Toronto Stock Exchange under the symbol ''PWI.UN''. The company's website is www.prime-west.com.

To: Kerm Yerman who wrote (14609)	1/5/1999 9:26:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / International Datashare Completes Purchase TSE SYMBOL: IED JANUARY 4, 1999 CALGARY, ALBERTA--The Company is very pleased to announce that it has completed its purchase of the operations of DocuServe Corporation ("DocuServe"). DocuServe specializes in high-speed scanning and document management solutions and has a significant customer base in the fields of Engineering, Telecommunications, Transportation, Finance, Law, Energy, Accounting, Real Estate, Government and numerous others. The DocuServe services compliment the Company's new image management products and services and are expected to assist the Company in expanding its revenue base both through access to these new industries, as well as general revenue growth as DocuServe services increase in demand. The acquisition was funded though a combination of bank debt and convertible debenture. The Company has realigned its operations into the three new divisions of Digital Products/Services, Image Products/Services, and On-Line Services and has repositioned itself with a series of new initiatives both in the customer product/service and investment communities. The Company has also designed a new Investor Relations program in order to elevate its profile in the investment community and will be executing this program immediately.

To: Kerm Yerman who wrote (14609)	1/5/1999 9:42:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Hawk Oil Inc. Production Update HAWK OIL MEETS YEAR-END PRODUCTION TARGET CALGARY, AB-- Hawk Oil Inc. is pleased to announce that it has met its year-end production target of 600 boepd with the tie in of 4 (net 4) gas wells in Vermilion River. Hawk will add to this production base with the tie in of another gas well (1 net) in Vermilion as well as 1 gas well (1 net) in Cardiff, both of which will be on production within 14 days. The Company estimates that its production at the end of January, 1999 will be comprised of 75% gas and 25% oil. Hawk further announces that it recently closed a private placement for the issue of 1,140,000 flow-through Class A Shares at a price of $1.00 per share for gross proceeds of $1,140,000. Subscriptions from two EnerVest FTS Limited Partnership funds accounted for 730,000 shares of the offering and the balance was raised by friends and business associates. Hawk Oil Inc. is a Calgary based oil and gas exploration and production company.

To: Kerm Yerman who wrote (14609)	1/5/1999 10:08:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Energy Trusts Cry Foul Over Proposed Takeover By CLAUDIA CATTANEO - The Financial Post Big bonuses to management, not cost savings, are among the drivers of hostile takeover bids for two oil and gas royalty trusts launched by a competing fund last month, the targeted funds charged yesterday. The funds, Orion Energy Holdings Inc. and Starcor Energy Royalty Fund, urged unit holders yesterday to reject unsolicited takeover offers from PrimeWest Energy Trust. Under the bids, PrimeWest management will collect fees of 1.5% of the transactions' value -- estimated at $1.3-million for Starcor and $1.5-million for Orion, the targeted funds say. The two trusts are run separately but have a common management group. "That seems like one of the main benefits of this deal," said Tom Budd, a managing partner at Griffiths McBurney & Partners and advisor to Orion. The bids are so low it won't be difficult to line up better offers, he said. Calgary-based PrimeWest announced Dec. 11 bids to take over the funds, also based in Calgary. The bids value Starcor at $95- million, including the assumption of $40-million in debt, and Orion at $105-million, including $34-million in debt. PrimeWest is offering 1.207 of its units for each Starcor unit, and 0.968 PrimeWest units for each Orion unit. PrimeWest is attempting to mask its own problems with the takeover, charged Lamont Tolley, president of both targeted funds. Publicly available information shows PrimeWest's own production is declining, which could result in lower distributions to unit holders. But PrimeWest is marching ahead with the campaign, taking the targeted funds to Alberta Court of Queen's Bench Thursday to challenge their poison pills. "Because we are a 'trust' and not a 'company' we feel that the poison pill is in violation of their declaration of trust," said Kent MacIntyre, vice-chairman and chief executive officer . PrimeWest claims the merger would allow a 30% reduction of overhead expenses, cut operating costs and reduce management fees. The result, it says, would be higher distributions to unit holders than would otherwise be available because of low oil prices. Mr. MacIntyre defended the 1.5% commission if the deal goes ahead, which he says is consistent with fees paid to other royalty trusts for successful acquisitions.