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

To: Kerm Yerman who wrote (14906)	1/20/1999 3:17:00 AM
From: Kerm Yerman	Respond to of 15196

NEB NOTICE / Requests Comments on New Onshore Pipeline Regulations, 1999 - Guidelines CALGARY, Jan. 19 /CNW/ - The National Energy Board (Board) is proposing to replace its current Onshore Pipeline Regulations (OPR) with a revised version and is requesting comments of interested persons on new Onshore Pipeline Regulations, 1999 - Guidelines (OPR Guidelines). These proposed changes are being made based on findings of past inquiries, including the inquiry concerning stress corrosion cracking on Canadian oil and gas pipelines conducted in 1995-96, together with safety and environmental issues arising from incident investigations, and revised technical standards. Under the National Energy Board Act, the Board may make regulations: governing the design, construction, operation and abandonment of a pipeline; providing for the protection of property and the environment; and ensuring the safety of the public and of the company's employees in the construction, operation and abandonment of a pipeline. The Board has undertaken to make the OPR more goal-oriented by identifying the required results of proper pipeline design, construction, operation and abandonment of pipelines. It is the pipeline company's responsibility to develop and prove appropriate specifications and procedures to ensure these required results are met. In order to achieve these results, the use of widely accepted standard procedures, such as those published by the Canadian Standards Association, is encouraged. The Board has developed the OPR Guidelines to assist industry in complying with the requirements of the OPR. The Board is of the opinion that this new approach will promote increased industry responsibility and allow additional flexibility, efficiency and opportunity to implement improved safety and environmental techniques in a more timely manner. The Board is requesting comments on the OPR Guidelines by 19 February 1999. This News Release, the proposed OPR and the OPR Guidelines are available on the Board's Internet site at neb.gc.ca under What's New!

To: Kerm Yerman who wrote (14906)	1/20/1999 3:19:00 AM
From: Kerm Yerman	Respond to of 15196

CORP REPORT / Syncrude Canada Ltd. Oil Sands Giant Has Record-Setting Year FORT MCMURRAY, AB, Jan. 19 /CNW/ - Syncrude Canada Ltd. announced today the fourth quarter and annual operating results of the Syncrude Joint Venture for 1998. Syncrude set another annual production record by shipping 76.7 million barrels (210,000 barrels/day) to the Joint Venture Owners. This represents the 17th year in 20 years of operation that Syncrude achieved record-breaking production. It also set a record for the lowest ever unit cost of $13.57/barrel. In 1997, total annual shipments were 75.7 million barrels (207,000 barrels/day) at a unit cost of $13.78. ''The year was a challenging one,'' said Eric Newell, Chairman and CEO, ''but Syncrude employees were equal to it and, as a result, 1998 was a year of many remarkable achievements.'' YEAR OF ACCOMPLISHMENT During the year, the first-stage upgrader debottleneck was completed on schedule and below budget. Engineering progress on the second production train for the North mine was finished. It incorporates the experience learned from the successful start-up of the first train in September 1997. The North Mine's second train will begin operations in the third quarter of 1999. In addition, groundbreaking on both the Aurora Mine and the second stage of the upgrader debottleneck project occurred and construction on both projects is well underway. An important part of the debottleneck project is the fabrication and installation of a vacuum distallation unit which will come on-stream in late 1999. The Aurora Mine and the rest of the upgrading debottleneck project will be fully operational in mid-2000. Significant engineering and design progress was also made on the major Upgrader expansion, which is currently under regulatory review. Capital expenditures were a record-breaking $481 million in 1998, about 35 percent higher than the $355 million spent in 1997. Key items included work on the second train of North Mine, completion of work on the first phase of the upgrader debottleneck project, construction of the first Aurora train and the second phase of the upgrader debottleneck project. Other major projects included the start-up of two inclined plate settling units as part of bitumen froth treatment, initial work on composite tails, and a waste heat recovery unit for the Diluent Recovery Plant 7-1. ''The major highlight of the year, of course, was the shipment in April of our billionth barrel of Syncrude Sweet Blend,'' Mr. Newell added, ''but there were many other significant achievements during 1998. We achieved excellent safety performance, and we continue to lead the industry in this important area.'' Environmental performance was also exceptional with no SO(2) exceedances and only one hour of opacity exceedance. These achievements are considered outstanding. The operation continues to be on track toward increased energy efficiency. Its goal is to achieve annual energy use reductions of one per cent on average for a total reduction of 35 percent per barrel of production between 1990 and 2008. Many of the gains will be realized as new equipment and technology are introduced through Syncrude's $6 billion capital investment program. Progress on Year 2000 system modifications has been according to plan. 1998 OPERATING RESULTS The overall unit cost for the year was $13.57/barrel, the lowest in the Joint Venture's history. The previous best was $13.69/barrel which occurred in 1995. Total unit costs include production, general and administrative costs, research and certain financing costs and Syncrude 21 Development expenditures. The 1997 total unit cost was $13.78/barrel. Direct production costs were $12.74/barrel in 1998 versus $13.06/barrel in 1997. 4Q 1998 OPERATING RESULTS Shipments in the fourth quarter were 20.8 million barrels at a total unit cost of $11.82/barrel. In the same period of 1997, shipments totalled 21.6 million barrels at a unit cost of $11.14/barrel. Production costs for the last quarter were $11.03/barrel, compared to $10.42 for the same quarter in 1997. JOINT VENTURE Syncrude is a Joint Venture owned by AEC Oil Sands, L.P. (AEC-TSE, AOG-NYSE), AEC Oil Sands Limited Partnership, Athabasca Oil Sands Investments Inc. (AOS.UN-TSE/MSE), Canadian Occidental Petroleum Ltd. (CXY-ASE/TSE), Canadian Oil Sands Investments Inc. (CO.UN-TSE), Gulf Canada Resources Ltd. (GOU-TSE/NYSE), Imperial Oil Resources (IMO-TSE/ASE), Mocal Energy Ltd., Murphy Oil Company Ltd. (MUR-NYSE), and Petro-Canada (PCA-TSE/PCZ-NYSE). SYNCRUDE JOINT VENTURE 4th quarter 12 months OPERATING RESULTS 1998 1997 1998 1997 -------------------------------------------------------- ------------- Shipments (millions of barrels) 20.8 21.6 76.7 75.7 -------------------------------------------------------- ------------- Shipments (thousands of barrels per day) 226 235 210 207 -------------------------------------------------------- ------------- Direct operating expenditures ($ million) 229 225 976 989 -------------------------------------------------------- ------------- Production unit costs ($/bbl) 11.03 10.42 12.74 13.06 -------------------------------------------------------- ------------- Corporate G&A/research/financing($million) 16 15 60 54 -------------------------------------------------------- ------------- Syncrude 21 Development Expense ($million) - - 4 - -------------------------------------------------------- ------------- Total expense ($ million) 245 240 1,040 1,043 -------------------------------------------------------- ------------- Total unit costs ($/bbl) 11.82 11.14 13.57 13.78 -------------------------------------------------------- ------------- Capital expenditures ($ million) 139 75 481 355 Development/Investment 106 43 317 202 Sustaining and Maintenance 33 32 164 153 -------------------------------------------------------- ------------ Safety Performance(x) Syncrude 0.91 0.79 0.94 0.91 Contractors 2.11 1.58 1.70 2.33 -------------------------------------------------------- ------------ dollars in $Cdn (x) The safety frequency rate is based on the number of medical aids, plus disabling injuries, for each 200,000 worker-hours (approximately 100 person-years). NOTE: Visit our web site at syncrude.com for more information about Syncrude as well as downloadable photographs of the operation located in the Library area of the site.

To: Kerm Yerman who wrote (14906)	1/20/1999 3:21:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Kappa Energy Prepares to Spud Well in Colombia CALGARY, Jan. 19 /CNW/ - Kappa Energy Company Inc. announced today that it has commenced operations on its first exploratory well in Colombia. The company has signed a contract with Marlin Colombia Drilling Co. Inc. to drill the Samarkanda-1 prospect on the 85% owned Chipalo Block in the Upper Magdalena Valley. At this time, the rig is 35% mobilized to the location and the contractor estimates that the well will spud on the 29th of January. The Samarkanda-1 well will test the lower Tertiary Doima formation at a depth of approximately 3500' at a location 25 meters northwest of a stratigraphic test drilled by Texaco in 1957. That well, Strat-3, encountered 32' of net oil pay in the Doima formation and on test recovered 30 degree API oil. The well was not completed or produced. Samarkanda-1 is anticipated to require 12 days to drill, test and case. Kappa estimates that the Samarkanda structure could contain up to 6 million barrels of recoverable oil at the Doima level. Beneath the Doima, at approximately 7000', an additional larger prospect has been identified in the Cretaceous Guadalupe formation. This prospect will be tested at a later date either by deepening Samarkanda-1 or by a separate well bore. An operational decision on how to proceed will be made following the test results on Samarkanda-1. Kappa plans to drill at least one additional well in Colombia during 1999. The oil price environment and economic considerations will dictate additional activity. Kappa Energy is a Calgary-based oil and gas company with international exploration operations.