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

To: Kerm Yerman who wrote (14918)	1/20/1999 12:19:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Layoffs Also Abound In Oil Industry By CLAUDIA CATTANEO With files from IAN MCKINNON The Financial Post Canada's oil industry is abuzz with rumors that large layoffs are looming, with at least two more large oil producers expected to announce hundreds of job cuts in coming days. As the 16-month oil price collapse ravages earnings, Amoco Canada Petroleum Co. and Canadian Occidental Petroleum Ltd. are next in line to issue pink slips, joining Gulf Canada Resources Ltd. and a myriad of others that have let staff go over the past year. "It's the reality of a $12 (US) oil price," said Kevin Finn, spokesman at CanOxy. The company is expected to cut up to 200 employees in the next few days, following $1-billion in asset sales to reduce debt. He would not confirm a final layoff tally until the official announcement. Large layoffs are also under way at Amoco Canada, following the recent takeover of its parent, Amoco Corp., by the British Petroleum Co. PLC. Hundreds of workers are expected to be cut lose. An official announcement on the number of casualties is expected by the end of the month, spokesman Rich Smith said. If prices don't rebound, more layoffs are expected in the oil service sector in the second and third quarters, said Miles Lich, a Calgary analyst with Peters & Co. Ltd. The first quarter is traditionally the busiest period of the year for the sector, which supplies equipment, services, and staff to oil and gas producers. No layoffs are planned at integrated oil firms like Petro-Canada, Imperial Oil Ltd., Shell Canada Ltd., and Suncor Energy Inc., which are less affected by low oil prices because they also buy oil for their refining and marketing operations. Suncor is in a recruitment mode, planning to hire 800 people in the next few years to staff its $2.2-billion oil sands expansion. Companies are now more inclined to prune capital spending than cut skilled staff, which would curtail their ability to grow when tough times are over, said Richard Woodward, leader of the energy group in Western Canada for Deloitte Consulting.

To: Kerm Yerman who wrote (14918)	1/20/1999 12:22:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Calgary Venture Seismic Inc. Trying To Stay Afloat By IAN MCKINNON The Financial Post Calgary Venture Seismic Ltd. is suing a former partner for $20-million (all figures in U.S. dollars) after entering stormy waters that caused trading in its shares to be halted, a prized ship to be seized and most of its directors to resign. The 14-year-old firm had the wind taken out of its sails by ambition and poor timing. It shares, which traded as high as $101 1/16 in the fall of 1997, closed at 9/32 on Jan. 15. Early yesterday, Nasdaq halted trading in the stock, saying it needed unspecified information from the firm. "If they don't find money soon or find someone to buy the company soon, they could be gone," said Fred Mutalibov, vice-president of equity research for Southwest Securities Group Inc. in Dallas. Venture has warned investors that it's not sure a plan can be worked out to stay afloat. The Calgary-based company specializes in providing three-dimensional seismic data. It bought Boone Geophysical Inc. of Huntsville, Tex. in 1996 and in late 1997 purchased Continental Holdings Ltd., a Calgary seismic firm that had one seismic vessel. Continental leased a boat, called the Pacific Titan, and spent millions of dollars to equip it for a 3-D marine seismic survey for Western Geophysical, a division of Baker Hughes Inc. In late December, Western Geophysical seized the boat and sued Continental for damages of $5.1-million, including $1.9 million invested in the Pacific Titan. It said the ship should have been ready by Oct. 1, a claim disputed by Venture. Gary Flaharty, spokesman for Baker Hughes, said the seizure was allowed under marine law to enforce its monetary claims. The legal wrangling caused four of Venture's six directors to resign, while all but one of Continental's directors abandoned ship.

To: Kerm Yerman who wrote (14918)	1/20/1999 12:34:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Confident Majors Rule Out Pink Slips Tony Seskus, Calgary Herald Oil's dismal price slump has some companies looking at layoffs to cut costs, but other major players in Alberta's oilpatch are ruling out pink slips. Petro-Canada, the second-largest integrated oil company in Canada, has no plans for downsizing despite the oil price downturn, company spokesman John Percic said Tuesday. "We have to staff accordingly to be able to conduct our business,'' he said. "We have rationalized our operations over the years and we're managing our business very prudently in a way to weather these low price cycles." But Fred Dyment, chief executive of Ranger Oil Ltd., said his company is reviewing staffing levels "across the board" as the impact of poor oil prices hits home. "These are tough times for the industry, but we've seen them before and hopefully the light at the end of the tunnel isn't that far down the road," he said. Dyment declined to comment on how significant any job reductions could be, but said a decision on staff will be made before the company releases its year-end 1998 financial results at the end of February. The firm has about 230 employees in Canada. Low oil prices can affect each petroleum producer differently, depending upon the mix of oil and gas production and their operating costs. For example, oilsands giant Suncor Energy Inc. on Tuesday posted a $188-million profit last year, although that was down 16 per cent from 1997. Shell Canada, is continuing to review its capital and expense plans for 1999, but does not have any specific plans that would affect staffing, said spokeswoman Jan Rowley. "We're keeping a close eye on those commodity prices," she said. "But so far we're just continuing. We don't have anything specific." Rowley said the company still has its major projects in place, adding that employee costs are not being looked as a line item on the company's financial books. "You have to see what kind of work you've got in front of you, so we haven't made any decisions on those plans in 1999," she said. Renaissance Energy Ltd. spokesman Doug Anguish said the company of 800 employees does not anticipate any layoffs, nor is it conducting a review of staffing levels. "Renaissance is taking a long-term view," he said. "We've successfully grown our assets over the years and one of our strongest assets is the people who work with us. When the recovery comes -- which it surely will because the industry is cyclical -- we want to be ready to go." Imperial Oil Resources Ltd. spokesman Pius Rolheiser said no review is being conducted of their staff and no layoffs are planned. Staff reductions of about 120 people in 1998 were achieved through retirement, transfers, attrition and divestments, he said. Imperial has about 900 employees in Calgary and 600 field staff in Western Canada. Gulf Canada representative Linda Lehrer said the company is not evaluating staffing levels at its operations and is not looking at job cuts. Gulf Canada has about 900 staff in this country. Lehrer did say, however, that the company would continue to keep a close eye on commodity prices and "how it was going to affect (Gulf's) operations."

To: Kerm Yerman who wrote (14918)	1/20/1999 12:42:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Low Oil Prices Hurt Suncor Energy's Earnings Fort McMurray Today Low oil prices hurt Suncor's earnings Higher production at Suncor Energy's oilsands plant has cushioned the blow of lower world crude oil prices. Suncor's production hit a new record in 1998, averaging 93,600 barrels per day. Cash costs were also down, averaging $12.75 per barrel, down from $14.75 per barrel in 1997. Unaudited consolidated earnings for 1998 were $188 million compared with 1997 earnings of $223 million. Suncor president and CEO Rick George said the $35-million decrease was primarily due to lower crude oil prices, the impact of which was partially offset by record production, a lower Canadian dollar, lower costs and Suncor's crude oil hedging program. "Unfortunately, lower crude oil prices prevented us from achieving our sixth consecutive year of earnings growth," George said in a news release. "The good news is that we still came through with solid results, record production, higher cash flow and significant process on our growth plans." He said Suncor is well-positioned for 1999 and has pre-sold about 20 per cent of its 1999 crude production at $20 US per barrel. Suncor's production target for 1999 is 105,000 barrels per day at a cash cost per barrel of about $12.50. The company reported its oilsands earnings declined to $35 million in the fourth quarter, down from $58 million over the same period in 1997. George said the lower earnings were due to higher cash costs reflected in the start-up of new Steepbank mine. Production for the last three months of 1998 averaged 94,700 barrels per day, with cash costs of $13.25 -- 25 cents higher than during the same period in 1997. Suncor's revenue for 1998 was $2.1 billion compared to $2.2 billion for 1997. Over at Syncrude Canada, a new production record was set with an average of 210,000 barrels shipped per day at a unit cost of $13.57 per barrel. That's Syncrude's lowest unit cost ever. The previous best was $13.69 in 1995. In 1997, the average shipment was 207,000 barrels per day -- a total of 75.7 million barrels for the year -- at a unit cost of $13.78. Shipping 76.7 million barrels represents the 17th year in Syncrude's 20 years of operation that a new production record has been set, said a news release. Syncrude's won't be releasing its 1998 financial information until mid-May. Reporting year-end financial results before the annual report was issued was "confusing" the investment marketplace, said Syncrude spokesman Peter Marshall. He added the delay in reporting revenues and earnings isn't related the low oil prices. "If you go back over the last several quarterly results that we have put out, we haven't been reporting revenue. We haven't been reporting revenues for some time." Syncrude is owned by AEC Oil Sands, LP; AEC Oil Sands Ltd. Partnership; Athabasca Oil Sands Investment Inc.; Canadian Occidental Petroleum Ltd.; Gulf Canada Resources Ltd.; Imperial Oil Resources; Mocal Energy Ltd.; Murphy Oil Canada Ltd. and Petro-Canada.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:37:00 PM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

FIELD ACTIVITIES / Petrohawk Energy Ltd. Drilling Update PETROHAWK ENERGY LTD. REPORTS SUCCESSFUL WELL RESULTS CALGARY, AB-- Petrohawk Energy Ltd. reports participating for various interests in the drilling of four (2.9 net) successful wells in the 4th Quarter of 1998, of which two are potential oil wells, one is a gas well and one a dual oil and gas well. The Provost Viking gas well has been placed on production on December 29th, 1998 and is producing approximately 325 mcf of gas per day (188 mcf per day or 19 barrels of oil equivalent, net to Petrohawk). The Company's interest is 58% before payout, 44% after payout. The detailed results of the other wells will be published at a later date, as the production testing is completed, or when the wells have produced for a sustained period of time. With the first of the 4 wells on production, PHK's productivity has increased by approximately 22% to 105 barrels equivalent per day. Once all four wells are placed on production, Petrohawk's daily rate will be increased significantly, with still additional development wells to be drilled. The Company anticipates that its cash flow will increase significantly.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:41:00 PM
From: Kerm Yerman	Respond to of 15196

CORP REPORT / Canadian Occidental Petroleum Ltd. 1998 Capital Program Adds Low Cost Reserves and Opportunities CALGARY, Jan. 20 /CNW/ - Canadian Occidental Petroleum Ltd. today announced that capital investment in oil and gas activities increased from $875 million in 1997 to $913 million in 1998. Of this amount, $332 million was invested in exploration, $525 million was invested in development and $56 million was invested in acquisitions. The company raised over $533 million in 1998 through dispositions of non-core assets, with a further $84 million of property sales closing in January 1999. 180% Production Replacement This investment resulted in proved reserve additions of 162 million barrels equivalent, before acquisitions and dispositions, replacing record annual production of 90 million barrels equivalent (248,000 barrels equivalent per day) by 180%. Net of acquisitions and dispositions, reserve additions totalled 120 million barrels, resulting in year-end proved reserves of 694 million barrels equivalent. $3.14 Per Barrel Reserve Replacement Cost President and Chief Executive Officer, Victor Zaleschuk commented: ''1998 was an outstanding year from an operating perspective. Reserve replacement costs averaged just Cdn. $3.14 per barrel equivalent on a proved basis, reflecting the success of our operations and our acquisition and disposition program. Finding and development costs averaged Cdn. $5.29 per barrel equivalent on a proved basis. This kind of performance sets the stage for sustained growth in future profits'' Over the past five years, CanadianOxy's finding and development costs have averaged Cdn. $5.67 per barrel equivalent while reserve replacement costs have averaged Cdn. $6.28 per barrel. Asset Management Enhances Growth Opportunities ''Low oil prices depressed the market for undeveloped acreage in 1998,'' Zaleschuk explained. ''At the same time the market for producing properties remained attractive. This created an opportunity to significantly enhance our growth potential.'' CanadianOxy acquired interests in approximately 16 million gross exploratory acres in Yemen, Nigeria and Australia, and significant undeveloped acreage and production in the Gulf of Mexico during the year. Offsetting this, dispositions of non-core Canadian and United Kingdom producing properties achieved values averaging over $10 per barrel equivalent for proven reserves in the ground. ''While the dispositions will have an impact on 1999 production, the start-up of the Ejulebe field offshore Nigeria in late 1998 and new production from the Buffalo field offshore Australia in late 1999, will restore these volumes,'' said Zaleschuk. ''And the acreage acquisitions provide us with exposure to significant opportunities in some of the lowest cost basins in the world.'' CanadianOxy is an independent, Canadian-based global energy and chemicals company. Core business activities include the exploration, development, production and marketing of crude oil and natural gas in Canada, the United States, Yemen, Nigeria, Australia, Colombia and Indonesia. Oil and Gas Proved Reserves (mmboe equivalent) Alternate Canada U.S. Fuels Yemen Others TOTAL Proved Reserves: ------------------------------------------------- December 31, 1997 259 53 168 156 28 664 ------------------------------------------------- Extensions and Discoveries 32 3 15 0 51 Revisions 15 5 26 55 9 111 Acquisitions 6 6 0 0 12 Divestments (41) (0) 0 (13) (54) Production (31) (11) (6) (38) (4) (91) ------------------------------------------------- December 31, 1998 239 56 188 189 22 694 -------------------------------------------------

To: Kerm Yerman who wrote (14918)	1/20/1999 2:44:00 PM
From: Kerm Yerman	Respond to of 15196

CORP REPORT / TriGas Exploration Announces 1998 Exit Rate and 1999 Capital Budget CALGARY, Jan. 20 /CNW/ - TriGas Exploration Inc. exited 1998 producing 18 mmcfe/d (98% natural gas and NGL's), providing an increase of 15.8 mmcfe/d (494%) over the 1997 exit rate of 3.2 mmcfe/d. The Company's Board of Directors has approved a 1999 capital expenditure budget of $11.3 million which will be funded through internally generated cash flow. The capital budget was arrived at using a 1999 natural gas price forecast of $2.25 per Mcf. The Company remains flexible and could increase or decrease the capital program depending on natural gas price. TriGas has an inventory of drillable natural gas prospects in its core area that exceeds its current 1999 capital budget. The Company's lenders have recently increased the line of credit by $4.0 million to $18.5 million. TriGas's net debt at December 31, 1998 was approximately $14.5 million. The TriGas drilling program will focus on Wabamun natural gas prospects in south central Alberta at Lone Pine, East Lone Pine and Irricana. The Lone Pine and East Lone Pine land blocks were partially acquired through the Ranger acquisition in mid 1998. Fifteen Wabamun gas wells are scheduled in this budget, with the majority expected to be drilled horizontally. Wabamun production capability in the area typically ranges from 4 to 8 mmcf/d. TriGas working interests range from 20 to 50% in these wells with an average interest of approximately 40%. TriGas (37.1%) drilled the first well in its winter program at Lone Pine in Q4, 1998. The well was rig released December 7, 1998, completed, tied-in 1.5 miles and on-stream by December 31, 1998. The common shares of TriGas are listed on The Toronto Stock Exchange under the symbol ''TGX'.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:46:00 PM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Brandon Energy Director Resigns CALGARY, Jan. 20 /CNW/ - Brandon Energy Ltd. announces today the resignation of director Bruce Pachkowski form the company's board of directors. Mr. Pachkowski has been a director of Brandon since incorporation. We thank him for his contributions and wish him well in the future.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:49:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Petro-Canada Announces Significant Discovery in Alberta Foothills CALGARY, Jan. 20 /CNW/ - Petro-Canada today announced that it has made a significant new natural gas discovery in the Benjamin Creek area, in the Alberta Foothills about 90 kilometres northwest of Calgary. With test flow rates of 35 million cubic feet per day, and a net pay of 147 metres, the Benjamin Creek 16-28-28-7 W5M well is one of the best natural gas wells ever drilled by Petro-Canada. The initial production rate for the well is expected to be 20 to 25 million cubic feet per day. Petro-Canada has a 74 per cent interest in the Benjamin Creek well and EBOC Energy Ltd. has the remaining 26 per cent interest. ''One of our key exploration areas in Western Canada is the Alberta Foothills region, and we are particularly pleased with the outstanding results that have been achieved at Wildcat Hills and Benjamin Creek recently,'' said Norm McIntyre, Executive Vice-President of Petro-Canada. ''There is large growth potential in the area, and we will continue pursuing an aggressive drilling program to fully exploit our opportunities there. In 1999, we will continue with an eight to ten well program, including development and exploration drilling.'' Targeting the Turner Valley formation, the Benjamin Creek well was drilled to a total depth of 3 800 metres. In the next few months, natural gas from this well will be tied into an existing pipeline that feeds into the Petro-Canada operated Wildcat Hills gas plant. The Benjamin Creek discovery is the latest of 18 consecutive successful wells that have been drilled on Petro-Canada's land holdings in the Wildcat Hills/Benjamin Creek area in the past three years. Benjamin Creek is located approximately 20 kilometres north of Wildcat Hills, where Petro-Canada announced a major new gas discovery in March 1998. Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry. Its common and variable voting shares trade on Canadian stock exchanges under the symbol PCA, and its variable voting shares trade on the New York Stock Exchange under the symbol PCZ.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:51:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Anadime Corp. Receives Approval to Accept and Process Invert Drill Cuttings ''Approval Expands Service Offerings at Niton Junction, Stettler and Hays'' CALGARY, Jan. 20 /CNW/ - Anadime Corporation, (TSE: AEM) today announced that it has received an interim approval to accept and process invert drill cuttings at its Niton Junction, Stettler and Hays plants. These three facilities are equipped with an exclusive, low temperature thermal processor, designed to remove C1 to C14 hydrocarbons from contaminated drill cuttings. The Company anticipates a disposal rate in the range of $100 per m3, FOB the plant gate. During the first phase of this two-phase development project, the dry processed cuttings will be shipped off-site to landfill for final disposal. ''Low temperature thermal processing of invert drill cuttings represents the first phase in the company's next wave of oilfield waste management technology solutions,'' said Owen Pinnell, President of Anadime. ''The second phase of this project will proceed following the closing of the recently announced Terra-Bond acquisition, and upon receipt of regulatory approvals to use this process for invert mud applications. The Terra-Bond synthetic gravel process will be used to convert invert drill cuttings into cold-mix asphalt for resale, further lowering disposal cost and eliminating the need for landfill disposal.'' Based in Calgary, Anadime provides liquid waste management services to the petroleum industry in Canada and California. The Company's industrial waste division operates exclusively in California and provides non-hazardous liquid waste disposal services to mining companies, landfills and general industrial operators in the greater Los Angeles area.

To: Kerm Yerman who wrote (14918)	1/20/1999 2:52:00 PM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Enerplus Resources Fund Monthly Cash Distribution Notice CALGARY, Jan. 20 /CNW/ - Notice is hereby given that a cash distribution at the rate of $0.025 (two and one half cents) per unit will be payable on February 15, 1999, to all Unitholders of record at the close of business on February 1, 1999. The Fund distributed $0.075 for the quarter ending December 31, 1998. Consequently, the new trailing last twelve month distribution paid totals $0.37 (thirty-seven cents) per Unit.