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 (14741)	1/11/1999 7:51:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITIONS / Shenandoah Resources To Acquire Oil & Gas Properties SHENANDOAH RESOURCES LTD. ANNOUNCES LETTER OF INTENT CALGARY, AB-- Shenandoah is pleased to announce that, consistent with the company's strategic plan, it has entered into a letter of intent to acquire additional oil and gas properties, the majority of which are adjacent to its existing production in the Wainwright area. The new properties currently produce at rates of approximately 152 Bopd and 346 Mcfpd (186 Boepd) with proven producing reserves of approximately 906 Mstb plus 501 MMcf (953 Mboe). Seventy percent of the properties have been evaluated by Gilbert Laustsen Jung Associates with the balance being evaluated by the company. Following the acquisition, Shenandoah's daily production rate will be approximately 386 Boepd. The new properties contain a number of low-risk drilling opportunities together with some higher risk exploration acreage. The company intends to develop these locations while concurrently pursuing other acquisition opportunities in its core area. Given the current commodity pricing, the company will focus more on its gas prone opportunities. The letter of intent provides for a purchase price of $1,721,000 for the properties. The purchase price will be funded by issuing 789,286 shares at $0.28 per share for $221,000 and by assuming $1,500,000 of the Vendor's bank debt. The transaction is subject to the normal conditions precedent including regulatory approvals and a formal agreement.

To: Kerm Yerman who wrote (14741)	1/11/1999 7:53:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Prudential Steel's New Longview Facility Commences Start-Up Operation CALGARY, ALBERTA--Prudential Steel announced today that its tubular manufacturing and distribution facility in Longview, Washington commenced its scheduled start-up in mid-December 1998. The new mill, which has been under construction for the past year, features state-of-the-art equipment and technology. Initial production will focus on manufacturing Hollow Structural Sections in a range from 2 x 2 inches through 8 x 8 inches. During 1999, as the facility's finishing line is completed, Prudential Steel Inc. will begin production of Line Pipe, Standard Pipe and Oil Country Tubular Goods in a range from 2 3/8 inches to 10 3/4 inches, with wall thickness up to .375 inches. "Our U.S. expansion project was on schedule, built at a low capital cost and financed through operating cash flows," said J. Donald Wilson, President and CEO, Prudential Steel Ltd. "Our first team of manufacturing associates have initiated operations, and during 1999 we will ramp up production levels according to market conditions at this efficient, leading edge facility." The Longview facility will have an operating capacity of 100,000 metric tonnes, (110,000 Imperial tons) based on a regular shift configuration and mix of products, and a maximum capacity of 125,000 metric tonnes (140,000 Imperial tons). "During 1999, we anticipate that production will build up within the range of 50 to 60 per cent of operating capacity, dependent upon product demand and steady operational improvements to mill efficiency." Expansion to the Pacific Northwest of the United States, follows Prudential's corporate strategy of geographical and product expansion. "Longview gives us the opportunity to be a high quality, niche player in a niche market. Previously this area had been serviced by manufacturers from other regions of the U.S., as well as from Pacific Rim suppliers. With the advent of new local steel capacity for hot rolled coil, our raw material, we have even greater opportunity to succeed by supplying quality, competitive products to the market." Founded in 1966, Prudential Steel has grown to become a leading manufacturer and marketer of energy-related products and a leading producer of industrial tubular products throughout North America. Based in Calgary, Alberta, Prudential Steel is widely recognized for its reputation for outstanding customer service and product quality, continuous improvement and innovative product development. Prudential Steel Ltd. is a publicly-held company, listed on the Toronto Stock Exchange and traded under the symbol PTS. For more information, visit the Company's website at prudentialsteel.com. Note: An aerial photograph of the Longview facility is available for downloading at the Prudential Steel website: www.prudentialsteel.com

To: Kerm Yerman who wrote (14741)	1/11/1999 7:55:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. NOTICE / Probe Exploration Inc. Shareholder Rights Plan PROBE ADOPTS SHAREHOLDER RIGHTS PLAN CALGARY, ALBERTA-- The Board of Directors of Probe Exploration Inc. (PRX-TSE) has adopted a Shareholder Rights Plan, subject to regulatory approval. In connection with the Plan, the Board authorized the distribution of one share purchase right for each outstanding common share of Probe held of record at the close of business today. The Plan is designed to ensure that all of Probe's shareholders are treated fairly if a take-over bid is made for Probe's shares and that sufficient time is available for the directors of Probe and all shareholders to fully evaluate any offer and pursue alternatives to maximize shareholder value. The Plan is similar to many plans adopted by other Canadian resource companies. The rights issued to shareholders under the Plan will entitle the holder to acquire common shares of Probe at a 50% discount to the market upon a person or group acquiring 20% or more of the common shares of Probe. However, the rights are not exercisable in the event of a "Permitted Bid". A Permitted Bid is a Take-over Bid made by way of a Take-over Bid circular which remains open for at least 45 days that is made to all shareholders for all of the shares of Probe. A Permitted Bid must also satisfy certain other conditions provided for in the Plan, including that a bidder under a Permitted Bid may only take up shares tendered under the bid if at least 50% of the shares held by shareholders independent of the bidder are deposited and the bid is then extended for a further period of 10 business days. The rights will not be exercisable and will not trade separate and apart from the common shares at any time prior to a person or group acquiring or announcing an intention to acquire (in a manner that does not constitute a Permitted Bid), securities to which are attached 20% or more of the votes attaching to all securities of Probe. The Plan is subject to shareholder confirmation within six months of its adoption. Shareholder approval will be sought at Probe's 1999 Annual General Meeting and the Plan is valid until the termination of Probe's Annual General Meeting in 2002. The Plan was not adopted in response to, or in anticipation of, any specific effort to acquire control of Probe. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:12:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Hartland Pipeline Services Ltd. Appoints Earl Wilkes as Chief Operating Officer, Engages Investor Relations Firm CALGARY, ALBERTA-- THIS NEW RELEASE IS NOT INTENDED FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH ANY SERVICES HAVING U.S. PARTICIPATION. Seasoned pipeline construction executive to manage Hartland Pipeline's operations Brian J. Murray, President and CEO of Hartland Pipelines Ltd., is pleased to announce the appointment of Earl Wilkes as Chief Operating Officer. Previously, Mr. Wiles was Vice President Operations for the Company. Prior thereto, he was President of Parkland Oilfield Construction (1983) Ltd., a pipeline construction company, now wholly owned by Hartland Pipeline Services Ltd. "Mr. Wilkes extensive experience in the operational management of major pipeline concerns is an invaluable addition to Hartland's senior management team," said Brian Murray, commenting on the appointment. "I am delighted to be able to count on his considerable skills to manage our eight consolidated operating subsidiaries." In his new role at Hartland, Mr. Wiles will be responsible for the overall management and integration of all the company's operations. "Within a very short period of time, this Company has developed a stable of high-quality pipeline assets that is truly impressive," said Mr. Wilkes. " I look forward to manage and integrate these assets well into the future." At the same time, the Company announced it has engaged Breakthrough Financial Marketing Inc. to assist the Corporation in the development and implementation of a full service investor relations program. Breakthrough Financial Marketing, based in Calgary, Alberta, provides rapidly growing public companies with proactive financial communications programs to establish and maintain relationships with the financial community. Under the terms of the one-year agreement, Breakthrough Financial Marketing will implement an investor relations program for Hartland Pipeline Services Ltd. designed to fulfill the needs of retail and institutional shareholders. All investor inquiries may now be addressed to Chevonne Miller, President of Breakthrough Financial Marketing. Hartland serves a broad client base of senior Canadian oil and natural gas producers and large pipeline companies. Hartland's vertically integrated operations provide construction services to the small and large diameter markets, including pipeline installation, facility construction, trenchless technologies (river crossings & plowing), pipeline repair and maintenance, trucking and reclamation services. Hartland's strategic objective is to become a full service provider of pipeline construction solutions to the North American and International gathering and pipeline construction markets.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:15:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. ANNOUNCEMENT / Calibre Energy Inc. Experiencing Financial Problems CALGARY, Jan. 11 /CNW/ - Calibre Energy Inc. (''Calibre'') (CBW) announced today that it is experiencing financial difficulty resulting from low commodity prices and reduced production. Calibre has advised its principal lenders that it is in default of its loan arrangements. The major lenders have advised Calibre of their present intention not to proceed to realize on any security or to otherwise take any immediate enforcement steps. Calibre is presently developing a plan for the purpose of negotiating a voluntary workout arrangement with its lenders and other creditors. Calibre Energy Inc. is a public oil and gas company trading on the Toronto Stock Exchange under the symbol CBW.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:17:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / PrimeWest Energy Trust Confirms Extension Of Offers For Starcor and Orion CALGARY, Jan. 11 /CNW/ -PrimeWest Energy Trust (PrimeWest) today confirmed that it has extended the time during which its offers for the outstanding trust units of Starcor Energy Royalty Fund (Starcor) and Orion Energy Trust (Orion) are open for acceptance -- from 11:59 p.m. (Alberta time) on January 12, 1999, to 11:59 p.m. (Alberta time) on January 22, 1999. On Friday, January 8, the Alberta Court of Queen's Bench upheld the legality of the unitholders' rights plans of Starcor and Orion. PrimeWest said it had extended the time during which its offers may be accepted, because it could suffer substantial dilution of its acquired interests in Starcor and Orion if it were to take up and pay for trust units of Starcor or Orion under the offers - unless either Starcor and Orion agree to waive the application of the rights plans to PrimeWest's offers, or securities regulators otherwise set aside the rights plans. On December 11, 1998, PrimeWest announced offers to purchase all of the outstanding trust units of Starcor and of Orion. PrimeWest retained CIBC Wood Gundy Securities Inc. to act as financial advisor for the offers. 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 will, after the sending of the notices of extension, expire on January 22, 1999, unless extended further in accordance with the terms of the offers. Units of PrimeWest, Starcor and Orion are traded on The Toronto Stock Exchange under the symbols ''PWI.UN'', ''STR.UN'' and ''OET.UN'', respectively. The PrimeWest website is located at www.prime-west.com.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:19:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Magin Energy Inc. Announces it Reached 10,000 Barrels of Oil Equivalent Per Day CALGARY, Jan. 11 /CNW/ - Magin Energy Inc. announces that it drilled 115 (net 108) wells in 1998 with an 87% success rate. There were 76 successful oil wells and 24 successful oil wells. Year-end debt net of working capital was approximately $73 million. Currently Magin's daily production is 44 million cubic feet of gas and 5,700 barrels of oil and liquids (10,100 barrels of oil equivalent). The winter drilling program is proceeding on schedule, with Magin currently drilling wells at Hamburg, Windfall, Edson and Copton. A total of 24 wells are planned for the first quarter.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:30:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Tesco Corporation Reports Nine Month Results CALGARY, Jan. 11 /CNW/ - First Nine Months Tesco Corporation reports that its unaudited net earnings for the nine months ended November 30, 1998 were $2.7 million, compared to $19.3 million for the comparative period last year. Fully diluted earnings per share were $0.08 for the nine months, compared to $0.64 for the first nine months of fiscal 1998. ------------------------------------------------------------------------- Millions of Cdn Dollars Nine Months Ended Nine Months Ended % (unless noted) November 30, 1998 November 30, 1997 Change ------------------------------------------------------------------------- Revenue $99.1 $114.5 -13% EBITDA $12.8 $ 38.4 -67% Net Earnings $ 2.7 $ 19.3 -86% Earnings per share - fully diluted ($/share) $0.08 $ 0.64 -88% Rental Service Days 10,678 13,884 -23% Top Drive Units Sold 16 15 +7% Capital Additions $37.7 $ 26.3 +43% Working Capital $61.2 $ 82.6 -26% Fully Diluted Shares Outstanding (millions) 34.7 33.7 +3% ------------------------------------------------------------------------- Third Quarter The Corporation further reports that its unaudited loss for the three months ended November 30, 1998 was $2.3 million, compared to net earnings of $7.3 million for the same quarter last year. Fully diluted loss per share was $0.07 for the quarter, compared to fully diluted earnings per share of $0.24 for the third quarter of fiscal 1998. ------------------------------------------------------------------------- Millions of Cdn Dollars Three Months Ended Three Months Ended % (unless noted) November 30, 1998 November 30, 1997 Change ------------------------------------------------------------------------- Revenue $31.1 $44.3 -30% EBITDA $(0.5) $14.5 -103% (Loss) Net Earnings $(2.3) $ 7.3 -132% (Loss) Earnings per share - fully diluted ($/share) $(0.07) $0.24 -129% Rental Service Days 3,152 5,110 -38% Top Drive Units Sold 4 5 -20% ------------------------------------------------------------------------- Third quarter results reflect the difficult industry operating environment arising from the worldwide decline in oil and gas prices. In response to this environment, Tesco has undertaken a thorough review of its organization and cost structure and has initiated measures to: - cut $10 million from the cost structure of the Corporation; - consolidate its rental operations into geographic business units; - concentrate its major manufacturing activities in a single facility. The Corporation continues to develop innovative drilling products and services. Notable events in this respect are: - industry acceptance of Tesco's integrated underbalanced drilling services, illustrated by all of the Corporation's available underbalanced equipment being committed for the winter drilling season; - successful completion of the first casing drilling test well which will lead to field tests in early 1999 and an additional, more complex, directional test well; - Tesco, has acquired the rights to an evolving technology, rotary steerable drilling, which it intends to develop and market in conjunction with its existing top drive and underbalanced drilling services; - Gris Gun Ltd, a subsidiary, has opened a state-of-the-art research and development center which will accelerate the development of proprietary downhole tools and equipment. Tesco has closed a US$46.5 million Unsecured Note financing with a group of U.S. institutional investors. The Unsecured Notes bear interest at 7.59% and are repayable on October 15, 2004. The Corporation has entered into customary covenants with respect to maintenance of consolidated net worth, interest coverage and secured debt. The proceeds of the unsecured note financing will be available for use as follows: - Repayment of existing bank indebtedness of approximately C$20 million. - Funding of acquisitions of complementary businesses. - Capital expenditures to fund its reservoir drilling service business. - Commercialization of the Corporation's proprietary casing drilling project. - Commercialization of recently acquired rotary steerable technology. In addition the Corporation has negotiated an unsecured line of credit of C$15 million with its principal banker. To discuss this information, a conference call has been set for: Tuesday, January 12, 1999 at 10:00 a.m. (M.S.T.) Noon (E.S.T.) If you wish to participate in the conference call, please call 1-800-997-6247 just prior to the start of the call. The conference call and all questions and answers will be recorded and made available for review until Tuesday, January 19, 1999. To listen to the recording, call (416) 626-4100 and ask for reservation No. 1482800.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:31:00 PM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / High Plains Energy Inc. Grants Options CALGARY, Jan. 11 /CNW/ - HIGH PLAINS ENERGY INC. HAS ANNOUNCED GRANTING OF THE FOLLOWING STOCK OPTIONS TO ITS DIRECTORS AND EMPLOYEES. ------------------------------------------------------------------ NAME POSITION NUMBER EXERCISE EXPIRY DATE PRICE ------------------------------------------------------------------ H.E. BOWMAN PRESIDENT 162,000 $0.20(X) 6-4-2002 G.L. WELLS DIRECTOR 100,000 $0.20(X) 6-4-2002 W.K. DICKSON VP PROD'N 10,000 $0.20(X) 2-13-2002 W.P. KIRKER DIRECTOR 27,500 $0.20(X) 2-13-2002 M.A. WILLIAMS DIRECTOR 50,000 $0.20 6-4-2002 W.P. KIRKER DIRECTOR 22,500 $0.20 6-4-2002 R.H. JOHNSON DIRECTOR 50,000 $0.20 6-4-2002 ------------------------------------------------------------------ NOTE(X) THESE OPTIONS WERE GRANTED EARLIER AND HAVE BEEN REPRICED FROM $0.50 TO $0.20

To: Kerm Yerman who wrote (14741)	1/11/1999 8:31:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Mera Petroleums Changes Winter Drilling Program CALGARY, ALBERTA--Mera Petroleums Inc. will maximize production and reduce expenditures with changes made to its Darwin gas field drilling and capital construction program. President and chief executive officer Robert McLeay announced today an agreement with neighboring landholders in North Darwin that will see the new partner pay Mera's $322,000 share of the gas plant expansion by way of equalization into the existing plant and sales line. Mera holds a 20 per cent interest in the current 10-mmcf/d gas plant, which will be expanded to 21 mmcf/d by March 15, 1999. Mera will hold a 12 per cent interest in the enlarged facility. Gas production from the new partner has also reduced the number of wells Mera will drill in North Darwin from five to two. The two wells are expected to supply an additional 4 mmcf/d production by mid-March. Mera holds a 12 per cent interest in these wells. McLeay has also halted a six-well drilling program in South Darwin as three of the first four wells were successful but have not yielded sufficient natural gas production to warrant construction of the planned 10 mmcf/d gas plant. Mera will review the results before proceeding with the final two wells.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:31:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / International Datashare - 1999 Second Quarter Results for the Six Months Ended November 30, 1998 CALGARY, ALBERTA-- REPORT TO SHAREHOLDERS You have asked "What is our future?" Our answer is - Total Information Management. THE CORPORATE SUMMARY - iDc will no longer be presented to the investment community as simply an oil&gas service company. We have found that this classification is far too narrow and does not accurately represent what the Company is or does. Since the Company went public in 1968 iDc has been an Information Management company but it has never been presented to the investment community as such. This is about to change. For the past four months, we have been quietly working to create the basis for changing the way the investment and customer communities view iDc. Lists of analysts, brokers, investment advisors, and individual investors who have an interest in Information Management companies have been compiled. A more relevant peer group has been assembled and the Company has been positioned within that group. A new, more pro-active, Investor Relations program has been designed and the Company has revamped its products and services marketing approach with a focus on Total Information Management.(please see the NEW site at www.datashare.net after January 15th -- make sure you "refresh" your browser so you get the new pages) The Company will continue to offer its traditional services but will now begin to apply its technologies, services, and expertise to other markets. iDc is very fortunate in that its technologies, services, and expertise are "cross-market compatible". This capability gives iDc the benefit of being able to enter other markets without the substantial investment in software and service development that typically accompanies such a move. THE NEWS - One of the news releases deals with the recent acquisition of a Document Management service company called DocuServe Corporation. This strategic acquisition brings with it substantial expertise in high speed document scanning, indexing, and optical character recognition ("OCR") as well as a wealth of major customers in fields other than oil&gas. The DocuServe services and expertise are completely complimentary to other iDc products and services and we expect that the revenues generated by this new division will be a significant part of our future revenue growth. Possibly the most exciting news has to do with Intellectual Crystals. This cutting-edge product is designed to capture a portion of a user's expertise within a graphic pattern for use as an accelerated analysis tool. The Company's first application of this technology will be to attempt generation of a series of by-passed gas prospects within the entire Western Canadian Sedimentary Basin. The Company plans to joint venture the development of these prospects in order to maximize its revenues from this value-added service. I truly believe that iDc has a very exciting future and continues to offer tremendous investment opportunity.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:31:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Velvet Exploration Ltd. Exits 1998 Producing in Excess of 18 MMCFE/D CALGARY, Jan. 11 /CNW/ - Velvet Exploration Ltd. (''Velvet'') is pleased to announce that it has met, and exceeded, its year-end production target of 18.0 mmcfe/d, exiting 1998 with production totaling 18.5 mmcfe/d. Production was comprised of 12.0 mmcf/d of natural gas, 140 bopd of natural gas liquids and 510 bopd of oil. The Company is targeting an exit production rate of 30 mmcfe/d for 1999, of which 70% is expected to be natural gas. The Company drilled 24.0 (12.4 net) wells in 1998 resulting in 16.0 (7.2 net) natural gas wells, 5.0 (3.8 net) oil wells and 3.0 (1.4 net) abandoned wells for an overall success rate of 88%. It is expected that approximately 50 wells (36 net) will be drilled in 1999, tripling the number of net wells drilled in 1998. The drilling of these wells, along with a 36 square mile 3-D seismic program that is currently being shot on the Stoney First Nation lands, are part of a $15 million capital expenditure program in 1999 focussed on Velvet's two core areas in Alberta. Velvet also wishes to announce that it has fulfilled its drilling commitment under a 1998 Oil and Gas Drilling Program Farmout and Participation Agreement with an independent limited partnership. In exchange for the drilling and completion of 3.0 (1.1 net) wells, Velvet received funds totaling $2,175,000. These proceeds have reduced bank debt, drawn on the Company's $5 million credit line, to approximately $1,000,000 at year-end, leaving the Company well positioned to pursue exploration, land and producing property acquisition opportunities in 1999. Under terms of the farmout arrangement, Velvet has the exclusive right, on or after February 1, 1999 and before May 31, 1999, to require the Limited Partnership to sell these assets to Velvet in exchange for common shares of the Company. Velvet Exploration Ltd. is a Canadian energy company engaged in the exploration, development and production of natural gas and crude oil. The Company's common shares are listed on The Toronto Stock Exchange under the trading symbol ''VLV''.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:33:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / Doreal Energy Corporation Private Placement DOREAL ENERGY CORPORATION - PRIVATE PLACEMENT OF UNITS AND CONVERTIBLE DEBENTURES VANCOUVER, BC-- Doreal Energy Corporation announces it intends to complete a brokered private placement of 222,000 units at $0.90 per unit. Each unit consists of one common share of Doreal and one share purchase warrant exchangeable into one common share at $1.00 per share on or before January 13, 2000. In addition, the Corporation announces it intends to complete a private placement of up to US $500,000 (CDN $757,000) of 12% Convertible Subordinated Debentures due January 31, 2000. The Debentures are convertible into common shares at a conversion price of $1.00 per share, and into share purchase warrants in a number equal to the number of common shares issuable upon conversion of the Debentures. Each warrant is exchangeable into one common share at $1.00 per share on or before January 31, 2000. Both private placements are subject to the Alberta Stock Exchange's final approval.

To: Kerm Yerman who wrote (14741)	1/11/1999 8:37:00 PM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

REPORTS / EIA Energy Forecast & OPEC Facts January 1999 (January 8, 1999) Projections Through the Year 2000 [To see details of this forecast update, go to the following World Wide Web site on the Internet: eia.doe.gov An update to the Short-Term Energy Model for January 1999 may be found at: eia.doe.gov] Highlights World Oil Prices Expected to Rise From Low December Levels The average price of imported crude for U.S. refiners (an indicator of world oil prices) is expected to climb from the estimated December level of about $9.25 per barrel to be about $13 per barrel by the end of 1999. The average price is expected to move above $14 per barrel by the end of 2000. Despite these increases, prices would remain low by historical standards. U.S. Oil Demand: Despite Slower Economy, 1999 Likely to Yield Higher Growth Despite the assumption of a slower economy, U.S. petroleum demand growth is expected to increase in 1999 by over 500,000 barrels per day, or 2.9 percent, from 1998 levels. Much of this growth is attributed to increases in demand for heating fuel and other weather-sensitive products. High Stock Levels, Low World Oil Prices Curtail Rise in Heating Oil U.S. heating oil prices in first-quarter 1999 are expected to rise an average of just 2 cents per gallon above fourth- quarter 1998 prices, a level still 10 cents per gallon below the first-quarter 1998 average. This comparatively low price scenario is expected despite expected colder weather because of the current low world oil prices and plentiful distillate inventories. Iraqi Oil Exports Continue Despite Bombings Iraqi oil exports do not appear to have been affected by airstrikes on that country in mid-December. This forecast includes the assumption that Iraqi oil exports will continue under the current United Nations Security Council resolutions, meaning, by EIA estimates, that Iraq will export about 1.8 million barrels per day in 1999 and 2.0 million barrels per day in 2000. High Natural Gas Storage Levels to Keep Wellhead Prices Under $2.00 Natural gas spot prices are projected to remain under $2 per thousand cubic feet through the summer of 1999, unless the weather in the gas-consuming regions turns unusually cold over the next few months. Current high storage levels relative to levels last year at this time will serve to moderate prices. An updated OPEC Fact Sheet is now available. To access this report, the World Wide Web address is: eia.doe.gov Included in the OPEC Fact Sheet are estimates of October 1998 and average Third Quarter 1998 crude oil production from the 11 OPEC countries, as well as the July 1 production quotas. EIA estimates of October crude oil production show that OPEC (excl. Iraq) was 85 percent compliant with their July 1 quotas, and 76 percent compliant on average in the Third Quarter of 1998. Also included in the OPEC Fact Sheet is information on OPEC's basket price, which in 1998, was the lowest average annual price since the OPEC basket was defined in 1986. The OPEC Fact Sheet is updated on a monthly basis.