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

To: Kerm Yerman who wrote (15010)	1/25/1999 9:45:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Big Bear Exploration Ltd. Completes Blue Range Acquisition TSE SYMBOL: BDX JANUARY 25, 1999 CALGARY, ALBERTA-- THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Big Bear Exploration Ltd. announced today that 31,952,630 Class "A" Voting Common shares of Blue Range Resource Corporation have been tendered to its take-over bid which expired on January 22, 1999. These shares represent approximately 91.3 percent of the issued and outstanding shares of Blue Range. Big Bear is now in a position to exercise compulsory acquisition rights to acquire 100 percent of the outstanding Blue Range shares, which it expects to complete on February 1, 1999. Jeff Tonken, President & CEO of Big Bear stated that he was very pleased with the overwhelming acceptance that has been obtained in respect of the offer. Mr. Tonken indicated that Big Bear's management team continues to vigorously review and implement the restructuring of the Blue Range business. In addition Big Bear completed the conversion of all of its outstanding Class "A" Convertible Preferred Shares into common shares of Big Bear at a conversion price of $0.70 per share on January 22, 1999. Big Bear also announced that the eleven for one consolidation of its common shares became effective on January 23, 1999. After taking into account all of these transactions, Big Bear will have approximately 42.1 million common shares outstanding. Big Bear Exploration Ltd. is a Calgary based oil and gas company listed on The Toronto Stock Exchange under the symbol "BDX".

To: Kerm Yerman who wrote (15010)	1/25/1999 9:49:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Canadian 88 Energy Corp. Wildcat Hills and Benjamin Creek Wells Drilling Full Speed Ahead into Large Foothills Structure TSE, ASE, AMEX SYMBOL: EEE JANUARY 25, 1999 CALGARY, ALBERTA--Canadian 88 Energy Corp. of Calgary, Alberta announced today that drilling on its Wildcat Hills and Benjamin Creek prospects are drilling ahead without difficulty. Each Canadian 88 operated well is evaluating separate Mississsippian foothills thrust sheets with estimated reserve accumulations of 100 to 300 Bcf a piece. The two wells are part of a large multi-well foothills program currently underway in the area. The Wildcat Hills well is located approximately 30 miles northwest of Calgary at L.S.D. 10, Sec. 14, Twp. 27, Rge. 7 W5M. Targeted total depth for the well is 3,453 meters. Currently the well is drilling ahead at a depth of 2,114 meters. Canadian 88 has 75 percent interest in the well. The Benjamin Creek well is located approximately 10 miles north of the L.S.D. 10 of 14 Wildcat Hills well at L.S.D. 1, Sec. 26. Twp. 28, Rge. 8 W5M. The well is being directionally drilled into L.S.D. 1 of 26 from a surface location at L.S.D. 9, Sec. 23, Twp. 28, Rge. 8 W5M to a measured depth of 2,450 meters. Upon completion of the L.S.D. 1 of 26 well, Canadian 88 will immediately commence the drilling of a second Benjamin Creek well (75 percent Canadian 88) vertically into L.S.D. 9 of 23 to a true vertical depth of 2,300 meters. The first Canadian 88 Benjamin Creek well (100 percent Canadian 88) is currently drilling ahead at 415 meters. Canadian 88's Benjamin well is being drilled approximately two and a half miles southwest of Petro Canada's recently announced L.S.D. 16, Sec. 28, Twp. 28, Rge. 7 W5M Mississippian Benjamin Creek discovery on the immediately offsetting Mississippian thrust sheet. On January 20, 1999 Petro Canada announced that its L.S.D. 16 of 28 well tested 35 mmcf/d with 147 meters of net pay, making the Benjamin Creek well one of the best natural gas wells ever drilled by Petro Canada. Extensive high resolution 3-D seismic recently conducted jointly by Canadian 88, Petro Canada and Shell Canada indicated that the wells being drilled by Canadian 88 should come in even structurally higher than Petro Canada's L.S.D. 16 of 28 well. Canadian 88 currently has seven rigs drilling deep gas prospects in the Alberta foothills. In addition to the two wells drilling at Wildcat Hills and Benjamin Creek, Canadian 88 has operated wells drilling at Strachan, Olds/Crossfield, Waterton and two rigs in the Ricinus area. Canadian 88 Energy Corp. (EEE) is an independent public oil and gas company with its head office in Calgary, Alberta, Canada. The shares of Canadian 88 Energy Corp. are traded on the Toronto, Alberta and American Stock Exchanges.

To: Kerm Yerman who wrote (15010)	1/25/1999 9:53:00 PM
From: Herb Duncan	Respond to of 15196

CORP / NCE Resources Group - Reminder - Invitation To Financial Advisors JANUARY 25, 1999 TORONTO, ONTARIO-- INVITATION TO FINANCIAL ADVISORS NCE RESOURCES GROUP invites you to attend an Education Seminar on Canadian Natural Gas - Today's Path To Prosperity featuring Industry Analyst, Richard Zarzeczny, Canadian Enerdata Limited and Energy Trust New Issue Information Meeting (originally scheduled for January 14th - postponed due to inclement weather) Highlights of the Presentation include: ------------------------------------------- - Current and future dynamics of North American natural gas market - Exciting developments that will reshape the Canadian natural gas industry - Opportunities for investment in natural gas producing assets to leverage for capital appreciation - US and Canadian Supply/Demand fundamentals - New pipeline capacity: better Canadian prices - Role of inventory and seasonal demands on market price - The impact of weather on price and demand - Environment, technology and other industry drivers - The need for capital to feed demand - The role of trusts: conservative investment to finance growth Also, John Driscoll, President, NCE Resources Group will present: The NCE Energy Trust New Issue Highlights The Investment: --------------- Issue: $25,000 Note units Amount: $25,000,000 Offering Price: $1,000 per unit (includes bonus warrants) Minimum Subscription $3,000 (3 units) Closing: March 1, 1999 The Notes --------- - 10 percent semi-annual payment for three years - Convertible after August 31, 1999 into units - Redeemable at maturity (February 28, 2002) into either units or cash at issuer's option The Warrants ------------ - 300 per $1,000 note unit - Right to buy one trust unit at $3.3333 for 2 years (February 28, 2001) Wednesday, January 27, 1999 - 4:30 p.m. - 5:30 p.m. Royal York Hotel, Toronto, Territories Room Cocktail reception to follow Don't miss this one day event RSVP Lianne MacDonald at 800-563-4623 or (416) 364-8788 If unable to attend and would like further information contact NCE Resources Group at the above number. /T/ RICHARD J. ZARZECZNY Industry Analyst Mr. Zarzeczny is principal and founder of Canadian Enerdata Limited (established in 1984), an energy and economic consulting firm specializing in oil and gas industry analysis and forecasting. He graduated from Simon Fraser University in 1980 with a Master of Arts degree in Economics specializing in econometrics and in 1975 received a Master of Arts degree in Mathematics from the University of Regina. Richard is publisher and editor of the Natural Gas Market Report and the Canadian Gas Price Reporter, the leading gas industry newsletters and price reporting services in Canada. He is also the founding organizer of the Toronto GasFair, an annual natural gas market conference and trade show.

To: Kerm Yerman who wrote (15010)	1/25/1999 9:56:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Rapidfire Announces Property Acquisition ASE SYMBOL: RPF JANUARY 25, 1999 CALGARY, ALBERTA--Rapidfire Resources Ltd. (ASE - RPF) announces that it has received conditional listing approval for 2.4 million treasury shares issued to Avalon Energy Ltd. to acquire two properties in southern Alberta. The deemed price of the shares is $0.10 per share and the transaction was arms-length in that the President of Avalon, Mike Woodford, joined the Board of Directors at the same time as the agreement was signed. The properties consist of a gas property at Leckie and an oil property at Coutts. In December Rapidfire sold a portion of its shut-in gas property in the Bow Island area. A joint venture program is being planned to tie-in the shut-in gas well at Leckie and the gas wells remaining at Bow Island. Company President, Richard Johnson, also reports that a successful gas well was drilled in December under a farm-out of its shallow rights in the Kirkpatrick Lake producing property. The well discovered gas from a new zone and tie-in to Rapidfire's production facilities is contemplated in the near future, depending upon the weather. Rapidfire retains an over-riding royalty on the well. The Farmor has the right to drill additional wells under the farm-out agreement. Two new members have recently joined the Board of Directors replacing two directors who resigned in December to pursue other business opportunities. Joan Moody, President of Alberta Compliance Services Inc., has extensive experience in public company reporting requirements. Angela Frank, B.Sc., is Vice President of Finance of Avalon Energy Ltd. and consults to Rapidfire on accounting matters. Court Mackid, P.Eng., MBA, a founding board member, Mike Woodford who joined in September of 1998 and Richard Johnson round out the five member Board. No changes in management are contemplated.

To: Kerm Yerman who wrote (15010)	1/25/1999 10:00:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Ella Resources: Private Placement Closed VSE SYMBOL: ERE JANUARY 25, 1999 VANCOUVER, BRITISH COLUMBIA--Ella Resources Inc. (VSE: ERE) announces that it has closed its private placement of 2,000,000 units for total proceeds of $300,000. The placement was carried out by issuing special warrants, each special warrant convertible into one "flow- through" share and one share purchase warrant. The non-transferable share purchase warrants entitle the placees to purchase an additional "flow-through" share for a period of one year at a price of $0.20 per share. The shares received on exercise of the special warrants and any shares acquired upon the exercise of the warrants will be non- transferable until December 4, 1999. The Company intends to file an annual information form with the British Columbia Securities Commission at which time the hold period on the shares received on the exercise of the special warrants and non-transferable warrants, will be reduced to April 4, 1999. The proceeds will be used to fund oil and gas exploration and development, including the Company's Knappen project in Alberta. Brian E. Bayley, Director

To: Kerm Yerman who wrote (15010)	1/25/1999 10:04:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 1 of 2 - Enbridge Posts Increased Earnings in 1998 as the Company Continues to Focus on Delivering Shareholder Value TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF JANUARY 25, 1999 CALGARY, ALBERTA--(January 25, 1999) HIGHLIGHTS: - 1998 earnings up 11 percent to $240.9 million - Quarterly dividends increased 6 percent to $0.575 per common share - Share price increased 8 percent to $70.50 as of year end 1998 - Deliveries on liquids pipelines systems averaged a record 2,136,000 barrels per day - $1.6 billion invested in the largest capital program in the Company's history For Enbridge Inc., 1998 was another successful year highlighted by higher earnings, an increase in the quarterly dividend, and superior returns to shareholders. Earnings grew to $240.9 million, or $3.31 per share, up from $217.3 million, or $3.15 per share, recorded in 1997. The $23.6 million increase reflects higher earnings from the Energy Transportation business unit, partially offset by lower Energy Distribution earnings reflecting the warmest weather on record in key franchise areas. "The Company's 1998 financial results show that we continue to deliver on our commitment to our shareholders," said Brian F. MacNeill, President and Chief Executive Officer of Enbridge Inc. "Our vision is to go beyond all others to deliver energy and related services to North American and International customers. That drives our key corporate objective, which is to provide long-term value through shareholder returns that are superior to those of comparable companies. We delivered on that again in 1998, and plan to continue doing so in the future." Annual dividends rose to $2.24 per common share, an increase of 6 percent over 1997, as quarterly dividends were increased beginning in the third quarter of 1998 to $0.575 per common share. The combination of dividend growth and the Company's share price appreciation meant that for the year ended December 31, 1998, the total return to an Enbridge shareholder from an investment made at the beginning of 1998 was 11.7 percent. That compares with a loss of 5 percent from a composite investment in the Canadian companies whose business activities and risk levels are most comparable to Enbridge, and with a loss of 1.6 percent by the Toronto Stock Exchange 300 Composite Index. The Enbridge Board of Directors today declared quarterly dividends of $0.575 per Common Share and $0.34375 per Series A Preference Share. Both dividends are payable on March 1, 1999, to shareholders of record on February 12, 1999. In 1998, earnings from the Energy Transportation business unit were $176.7 million, an increase of $54.2 million, or 44 percent, from 1997. The increase reflects higher returns generated from system expansion, and the settlement of an insurance claim outstanding since 1991. Results also reflect improved contributions from the Colombia pipeline project, which was completed early in 1998, and allowances for equity funds used during construction of system expansions, the Athabasca crude oil pipeline, and the Alliance natural gas pipeline project. Earnings from the Energy Distribution business unit were down 27 percent to $91.1 million, as earnings from Enbridge Consumers Gas declined by 34 percent to $82.5 million due to the much warmer than normal weather and a reduction in the allowed rate of return on equity. Enbridge estimates that the warmer weather resulted in a reduction in earnings of approximately $40 million when compared with earnings expected under normal weather patterns. However, the Company continued to implement a variety of cost reduction initiatives, operational efficiencies and other corporate actions across the Enbridge Group of Companies, which substantially mitigated the adverse effect of the warmer weather on consolidated 1998 earnings. Energy Distribution earnings also include higher earnings attributable to the Company's 32 percent interest in Noverco Inc., acquired in late 1997. Net costs of the Corporate segment, which include financing and other investing activities, were $26.9 million, 9 percent lower than in 1997. Higher interest costs resulting from increased debt levels associated with growth initiatives were offset by one time gains resulting from the sale of non-strategic real estate and the recovery of previously expensed assets held under a financing arrangement. Consistent with prior years, the Company recorded a loss of $7.7 million for the fourth quarter of 1998, compared with a loss of $5.2 million in the fourth quarter of 1997, reflecting the seasonality of earnings at Enbridge Consumers Gas. To position the Company for further growth, in 1998, Enbridge invested more than $1.6 billion including $1.4 billion for additions to property, plant and equipment, and approximately $200 million on long-term investments. This level of investment was made possible by the Company's strong financial position and continued access to capital markets: since the beginning of 1996, the Company has raised more than $3.4 billion through equity and debt offerings, including $1.9 billion in 1998. In 1998, Enbridge invested in projects to expand its core pipelines, reflecting its positive outlook for long-term supply growth in crude oil and natural gas liquids from Western Canada. The Company also invested in its gas distribution business and new business opportunities such as retail energy services. Key accomplishments included: - Construction of two expansion projects, SEP II and Terrace Phase I, that will be completed in early 1999 and add approximately 290,000 barrels per day of capacity to the Company's crude oil and natural gas liquids pipeline systems by year end. - Construction of the Athabasca Pipeline that will be completed by the second quarter of 1999 and which will have the capacity to transport 570,000 barrels per day of heavy oil from the oil sands near Fort McMurray to the hub at Hardisty, Alberta. - Participation in two major gas transmission projects that will move a billion cubic feet per day of natural gas from Western Canada to markets in Eastern Canada and the U.S. Midwest and Eastern States by late 2000: the Alliance Pipeline received final regulatory approvals in 1998 and will start construction in 1999, while the Vector Pipeline, which will connect with Alliance and other pipelines at Chicago, Illinois, received initial regulatory approvals in the U.S. - Continued expansion of the Enbridge Consumers Gas system, adding approximately 50,000 new customers in 1998. Enbridge Inc., formerly known as IPL Energy Inc., is a leader in energy transportation, distribution and services. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids pipeline system. The Company also is involved in liquids marketing and international energy projects, and has a growing involvement in natural gas transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides gas and retail services in Ontario, Quebec and New York State; and is involved in the generation and distribution of electricity. In addition, Enbridge provides retail energy products and services to a growing number of Canadian and U.S. markets. The Company employs more than 5,000 people, primarily in Canada, the U.S. and South America. Enbridge common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "ENB" and on The NASDAQ National Market in the U.S. under the symbol "ENBRF". Information about Enbridge is available on the World Wide Web at enbridge.com. When used in this press release, the words "anticipated", "expected", "projected" and similar expressions are intended to identify forward looking statements, which include statements relating to pending and proposed projects. Such statements are subject to certain risks, uncertainties and assumptions pertaining to operating performance, regulatory parameters, weather and economic conditions and, in the case of pending and proposed projects, risks relating to design and construction, regulatory processes, obtaining financing and performance of other parties, including partners, contractors and suppliers. FINANCIAL TABLES TO FOLLOW

To: Kerm Yerman who wrote (15010)	1/25/1999 10:08:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 2 of 2 - Enbridge Posts Increased Earnings in 1998 as the Company Continues to Focus on Delivering Shareholder Value TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF JANUARY 25, 1999 CALGARY, ALBERTA--(January 25, 1999) /T/ ENBRIDGE INC. (formerly IPL Energy Inc.) HIGHLIGHTS(1) -------------------------------------------------------------- Three months ended Year ended December 31, December 31, (Canadian dollars in millions, except per share amounts) 1998 1997 1998 1997 -------------------------------------------------------------- FINANCIAL Earnings Energy Transportation 45.6 31.2 176.7 122.5 Energy Distribution (42.1) (34.8) 91.1 124.2 Corporate (11.2) (1.6) (26.9) (29.4) -------------------------------------------------------------- Consolidated Earnings (7.7) (5.2) 240.9 217.3 -------------------------------------------------------------- -------------------------------------------------------------- Operating Revenue Energy Transportation 119.9 131.8 514.6 518.1 Energy Distribution 233.3 214.2 1,827.1 2,001.9 -------------------------------------------------------------- Consolidated Operating Revenue 353.2 346.0 2,341.7 2,520.0 -------------------------------------------------------------- -------------------------------------------------------------- Cash Provided by Operating Activities(2) Earnings plus charges (credits) not affecting cash 93.2 49.9 536.1 488.2 Changes in working capital (189.2) (52.3) (219.9) (44.4) -------------------------------------------------------------- (96.0) (2.4) 316.2 443.8 -------------------------------------------------------------- -------------------------------------------------------------- Dividends 44.7 40.4 168.3 147.1 Per Share Amounts Earnings (0.13) (0.13) 3.31 3.15 Dividends 0.575 0.545 2.24 2.12 Weighted Average Shares Outstanding (millions) 72.7 68.9 -------------------------------------------------------------- -------------------------------------------------------------- OPERATING Energy Transportation(3) Deliveries (thousands of barrels per day) 2,095 2,259 2,136 2,083 Barrel miles (billions) 190 203 771 771 Average haul (miles) 987 977 989 1,014 Energy Distribution Gas distribution volumes (billion cubic feet) 44 46 397 428 Number of active customers (thousands) 1,414 1,362 1,414 1,362 Degree day deficiency(4) Actual 43 115 3,352 4,011 Forecast based on normal weather 94 125 4,079 4,003 -------------------------------------------------------------- -------------------------------------------------------------- /T/ 1. Highlights of Energy Distribution reflect the results of Enbridge Consumers Gas (The Consumers' Gas Company Ltd.) and other gas distribution assets on a quarter lag basis of consolidation for the three and twelve months ended September 30, 1998 and 1997. 2. Prior years' amounts have been restated to conform to the new Statement of Cash Flows standard adopted in 1998. 3. Energy Transportation operating highlights include the statistics of the 16.6 percent owned portion of the mainline system located in the United States. 4. Degree day deficiency is a measure of coldness which is indicative of volumetric requirements of natural gas utilized for heating purposes in all markets. It is calculated by accumulating from October 1 the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area. /T/ ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED STATEMENT OF EARNINGS -------------------------------------------------------------- (Audited; Canadian dollars in millions, except per share amounts) -------------------------------------------------------------- Year ended December 31, 1998 1997 1996 -------------------------------------------------------------- Operating Revenue Gas sales 1,416.1 1,763.9 1,749.8 Transportation 624.8 537.3 516.1 Other 300.8 218.8 192.0 -------------------------------------------------------------- 2,341.7 2,520.0 2,457.9 -------------------------------------------------------------- Expenses Gas costs 865.0 1,036.4 1,064.3 Operating and administrative 675.0 638.4 576.3 Depreciation 309.0 274.0 237.0 -------------------------------------------------------------- 1,849.0 1,948.8 1,877.6 -------------------------------------------------------------- Operating Income 492.7 571.2 580.3 Investment and Other Income 156.4 76.5 31.7 Interest Expense (312.9) (276.1) (271.3) -------------------------------------------------------------- Earnings Before Undernoted 336.2 371.6 340.7 Income Taxes (95.3) (154.3) (138.3) -------------------------------------------------------------- 240.9 217.3 202.4 Minority Interest - - (22.1) -------------------------------------------------------------- Earnings 240.9 217.3 180.3 -------------------------------------------------------------- -------------------------------------------------------------- Earnings Per Share 3.31 3.15 2.90 -------------------------------------------------------------- -------------------------------------------------------------- CONSOLIDATED STATEMENT OF RETAINED EARNINGS -------------------------------------------------------------- (Audited; Canadian dollars in millions, except per share amounts) -------------------------------------------------------------- Year ended December 31, 1998 1997 1996 -------------------------------------------------------------- Retained Earnings at Beginning of Year 336.7 266.5 212.1 Earnings 240.9 217.3 180.3 Preferred Share Issue Costs (1.7) - - Dividends (168.3) (147.1) (125.9) -------------------------------------------------------------- Retained Earnings at End of Year 407.6 336.7 266.5 -------------------------------------------------------------- -------------------------------------------------------------- Dividends Per Share 2.24 2.12 2.03 -------------------------------------------------------------- -------------------------------------------------------------- ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------------------------- (Audited; Canadian dollars in millions) -------------------------------------------------------------- Year ended December 31, 1998 1997 1996 -------------------------------------------------------------- (restated)(restated) Cash Provided from Operating Activities Earnings 240.9 217.3 180.3 Charges (credits) not affecting cash: Depreciation 309.0 274.0 237.0 Deferred income taxes (26.1) (0.1) 12.6 Minority interest - - 22.1 Other 12.3 (3.0) 12.8 Changes in non cash working capital (219.9) (44.4) 27.8 -------------------------------------------------------------- 316.2 443.8 492.6 -------------------------------------------------------------- Investing Activities Long term investments (181.0) (434.8) (65.0) Acquisition of subsidiaries and joint ventures (76.1) (3.6) (168.7) Additions to property, plant and equipment (1,388.4) (651.4) (560.5) Changes in non cash working capital 61.9 36.2 - Other (10.6) (11.3) (28.2) -------------------------------------------------------------- (1,594.2) (1,064.9) (822.4) -------------------------------------------------------------- Financing Activities Variable rate financing, net 349.0 130.6 197.4 Fixed rate financing, net 829.6 359.5 107.4 Minority interest - - (8.6) Preferred shares 123.3 - - Common shares 218.0 315.6 141.5 Dividends (168.3) (147.1) (125.9) -------------------------------------------------------------- 1,351.6 658.6 311.8 -------------------------------------------------------------- Increase (Decrease) in Cash 73.6 37.5 (18.0) Cash at Beginning of Year 51.3 13.8 31.8 -------------------------------------------------------------- Cash at End of Year 124.9 51.3 13.8 -------------------------------------------------------------- -------------------------------------------------------------- Prior years' amounts have been restated to conform to the new Statement of Cash Flows standard adopted in 1998. ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED STATEMENT OF FINANCIAL POSITION -------------------------------------------------------------- (Audited; Canadian dollars in millions) -------------------------------------------------------------- December 31, 1998 1997 -------------------------------------------------------------- ASSETS Current Assets Cash 124.9 51.3 Accounts receivable and other 611.3 436.6 Gas in storage 357.8 309.9 -------------------------------------------------------------- 1,094.0 797.8 Long Term Investments 676.9 517.3 Deferred Charges and Other 212.1 142.1 Property, Plant and Equipment, Net 6,364.2 5,215.0 -------------------------------------------------------------- 8,347.2 6,672.2 -------------------------------------------------------------- -------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short term borrowings 400.4 398.8 Accounts payable and other 540.9 493.3 Interest payable 87.9 70.9 Current portion of long term liabilities 257.5 409.4 -------------------------------------------------------------- 1,286.7 1,372.4 Long Term Debt 4,502.3 3,166.4 Deferred Credits 116.3 59.8 Deferred Income Taxes 380.5 374.2 -------------------------------------------------------------- 6,285.8 4,972.8 -------------------------------------------------------------- Shareholders' Equity Share capital Preferred shares 125.0 - Common shares Issued - 1998 - 77,855,000 (1997 - 74,164,000) 1,659.8 1,441.8 Retained earnings 407.6 336.7 Foreign currency translation adjustment (9.1) 12.9 Reciprocal shareholding (121.9) (92.0) -------------------------------------------------------------- 2,061.4 1,699.4 -------------------------------------------------------------- 8,347.2 6,672.2 -------------------------------------------------------------- --------------------------------------------------------------

To: Kerm Yerman who wrote (15010)	1/25/1999 10:11:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Slade Energy Closes Private Placement ASE SYMBOL: SDE JANUARY 25, 1999 Slade Energy Inc. (the "Corporation") wishes to announce that it has closed a private placement for total proceeds of $175,000.00. The proceeds will be used to finance ongoing expenditures. The Corporation would also like to announce that effective January 18, 1999, the Corporation has terminated transfer agent services with The Montreal Trust Company of Canada, and has appointed CIBC Mellon Trust Company of Calgary as the new transfer agent and registrar.

To: Kerm Yerman who wrote (15010)	1/25/1999 10:17:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Slade Energy Closes Private Placement ASE SYMBOL: SDE JANUARY 25, 1999 CALGARY, ALBERTA--Slade Energy Inc. (the "Corporation") wishes to announce that it has closed a private placement for total proceeds of $175,000.00. The proceeds will be used to finance ongoing expenditures. The Corporation would also like to announce that effective January 18, 1999, the Corporation has terminated transfer agent services with The Montreal Trust Company of Canada, and has appointed CIBC Mellon Trust Company of Calgary as the new transfer agent and registrar.

To: Kerm Yerman who wrote (15010)	1/25/1999 10:24:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Forest Oil Corporation Announces Certain Preliminary 1998 Information NYSE SYMBOL: FST JANUARY 25, 1999 DENVER, COLORADO--Forest Oil Corporation announced certain preliminary information for 1998 today which has been disclosed in connection with its previously announced public offering of $100 million of Senior Subordinated Notes. David H. Keyte, Executive Vice President and Chief Financial Officer, stated, "We believe that our estimated proved reserves as of December 31, 1998, were in the range of 750 BCFE to 800 BCFE. Approximately 70 percent to 75 percent of our reserves are located in the United States and about 70 percent of proved reserves are natural gas. We may have a writedown of up to $50 million for the fourth quarter of 1998 due to lower oil prices. We estimate that our 1998 finding costs for all sources, including price related revisions, were in the range of $1.35 to $1.40 per MCFE. We have not finalized our 1998 results and therefore we can give you no assurance that actual results will not vary materially from these estimates." This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that expected results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks and other risk factors as described in the company's 1997 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Forest Oil Corporation is engaged in the acquisition, exploration, development, production, and marketing of natural gas and crude oil in North America. Forest's principal reserves and producing properties are located in the United States in the Gulf of Mexico, Louisiana, Texas, Oklahoma and Wyoming and in Canada in Alberta and the Northwest Territories. Forest's common stock trades on the New York Stock Exchange under the symbol FST.

To: Kerm Yerman who wrote (15010)	1/26/1999 2:45:00 AM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

ENERGY TRUSTS / Athabasca Oil Sands Trust Reports Fourth Quarter Results - Distribution set at zero as Trust continues to re-invest in Syncrude growth CALGARY, Jan. 25 /CNW/ - The Board of Directors of Athabasca Oil Sands Investments Inc. today announced that there would be no fourth quarter distribution to unitholders of the Athabasca Oil Sands Trust. The decision reflects both the significant capital investments associated with on-going Syncrude expansion and the current low oil price environment. Athabasca invested a record $58.2 million in capital expenditures in the Syncrude Joint Venture in 1998 compared to $41.5 million in 1997. The majority of this investment was funded with cash from the Syncrude operations, with the remainder coming from working capital and new borrowings. ''Athabasca reported net income of $0.08 per Trust Unit in the fourth quarter for a full year total of $0.40, despite the low oil prices that prevailed throughout the year,'' says Chairman Walter O'Donoghue. ''We are in a building period with substantial capital expenditures required to expand Syncrude's operations. This investment in Syncrude growth is consistent with the long-term growth strategy of the Trust and is expected to result in increased Syncrude Sweet Blend (SSB) production and decreased costs. We are confident that this strategy will significantly enhance the fundamental value of our units.'' Athabasca's SSB revenues were $44 million for the fourth quarter of 1998, $24 million lower than the same period last year, reflecting substantially lower crude oil prices. Fourth quarter sales volumes of approximately 26,500 barrels per day were down 550 barrels per day from 1997's record fourth quarter. On a full year basis, volumes increased to a record 24,500 barrels per day. SSB prices averaged $19.19 per barrel in the quarter for a full year average of $20.45 at the plant gate compared to $27.45 per barrel in the fourth quarter of 1998 and $27.84 for the full year. Including the effects of currency hedging, Athabasca's average price received in the quarter was $17.88 per barrel and $19.15 for the year. Despite an unscheduled coker shutdown, new annual records for volumes and operating costs for the Syncrude Joint Venture were achieved in 1998. The Joint Venture's volumes were 76.7 million barrels at an average operating cost of $13.57 per barrel compared to 75.7 million barrels at $13.78 per barrel last year. Building on these strong operating results, volumes are budgeted at 82 million barrels at a cost of $13.27 per barrel for 1999. Increased volumes are expected from a second mining train in the North Mine opening in 1999 and the full utilization of the recently completed Debottleneck 1 project. Reflecting these targets and the joint venture's capital spending plans and assuming a continuation of low oil prices, Athabasca expects that all cash flow during 1999 will be re-invested into the Syncrude Project. Consolidated Balance Sheets December 31, December 31, 1998 1997 (unaudited) ----------------------------------------------------------------------- (thousands of dollars) ----------------------------------------------------------------------- ASSETS Current assets: Cash $0 $29,169 Accounts receivable 23,968 23,876 Inventories 15,973 14,510 Prepaid expenses 843 383 ----------------------------------------------------------------------- 40,784 67,938 Reclamation trust 1,628 970 Capital assets, net 406,193 372,684 Deferred charges 12,072 4,675 ----------------------------------------------------------------------- $460,677 $446,267 ----------------------------------------------------------------------- LIABILITIES AND UNITHOLDERS' EQUITY Current liabilities: Bank indebtedness $2,176 $0 Accounts payable and accrued liabilities 21,956 25,167 Unit distribution payable 0 13,500 Current portion of other liabilities 5,676 1,986 ----------------------------------------------------------------------- 29,808 40,653 Other liabilities 10,618 14,518 Long-term debt 124,972 106,226 Future site restoration and reclamation costs 14,012 13,042 Preferred shares of subsidiary 2,400 2,400 ----------------------------------------------------------------------- 181,810 176,839 ----------------------------------------------------------------------- Unitholders' equity Trust units 254,975 254,975 Retained earnings 23,892 14,453 ----------------------------------------------------------------------- 278,867 269,428 ----------------------------------------------------------------------- $460,677 $446,267 ----------------------------------------------------------------------- Consolidated Statements of Income and Retained Earnings (Unaudited) Three months Year ended ended December 31, December 31, 1998 1997 1998 1997 ----------------------------------------------------------------------- (thousands of dollars except per unit amounts) ----------------------------------------------------------------------- Revenues: Syncrude Sweet Blend $43,661 $67,593 $171,554 $245,206 Other 55 185 388 732 ----------------------------------------------------------------------- 43,716 67,778 171,942 245,938 ----------------------------------------------------------------------- Expenses: Operating 30,789 28,126 121,622 122,511 Administration and other 674 1,095 2,753 4,169 Crown royalties 65 11,297 65 23,696 Finance charges 2,923 2,245 9,978 9,215 Dividends on preferred shares of subsidiary 90 66 360 264 Depletion, depreciation and amortization 6,708 8,488 25,903 29,170 ----------------------------------------------------------------------- 41,249 51,317 160,681 189,025 ----------------------------------------------------------------------- Income before taxes 2,467 16,461 11,261 56,913 Capital and other taxes 235 59 472 239 ----------------------------------------------------------------------- Net income for the period 2,232 16,402 10,789 56,674 Retained earnings, beginning of period 21,660 11,551 14,453 2,329 Unit distributions 0 (13,500) (1,350) (44,550) ----------------------------------------------------------------------- Retained earnings, end of period $23,892 $14,453 $23,892 $14,453 ----------------------------------------------------------------------- Net income per Trust Unit $0.08 $0.61 $0.40 $2.10 ----------------------------------------------------------------------- Consolidated Statements of Changes in Financial Position (Unaudited) Three months Year ended Ended December 31, December 31, 1998 1997 1998 1997 ----------------------------------------------------------------------- (thousands of dollars) ----------------------------------------------------------------------- Cash provided by (used in): Operations: Net income $2,232 $16,402 $10,789 $56,674 Items not involving cash: Depletion, depreciation and amortization 6,823 8,530 26,248 30,750 Site restoration costs 0 (57) (379) (382) Contribution to reclamation trust (174) (155) (658) (538) Change in non-cash working capital (5,718) 3,814 (5,120) 557 ----------------------------------------------------------------------- 3,163 28,534 30,880 87,061 ----------------------------------------------------------------------- Investments: Capital expenditures, net (16,304) (8,847) (58,165) (41,498) ----------------------------------------------------------------------- Sub-total (13,141) 19,687 (27,285) 45,563 ----------------------------------------------------------------------- Financing: Decrease in other liabilities (1,515) (1,302) (210) (3,329) Increase in long-term debt 11,000 0 11,000 102,876 Repayment of long-term debt 0 0 0 (95,000) Net restricted cash 0 0 0 3,550 Deferred financing costs 0 0 0 (1,407) ----------------------------------------------------------------------- 9,485 (1,302) 10,790 6,690 ----------------------------------------------------------------------- Other: Current year unit distributions paid 0 (13,500) (1,350) (31,050) Prior year unit distributions paid 0 0 (13,500) (21,600) ----------------------------------------------------------------------- 0 (13,500) (14,850) (52,650) ----------------------------------------------------------------------- Increase (decrease) in cash (3,656) 4,885 (31,345) (397) Cash , beginning of period 1,480 24,284 29,169 29,566 ----------------------------------------------------------------------- Cash (bank indebtedness), end of period $(2,176) $29,169 $(2,176) $29,169 ----------------------------------------------------------------------- Statements of Trust Royalty and Distributable Income (Unaudited) Three months Year ended Ended December 31, December 31, 1998 1997 1998 1997 ------------------------------------------------------------------------- (thousands of dollars except per unit amounts) ------------------------------------------------------------------------- Revenues and expenses of Athabasca Oil Sands Investments Inc. Revenues $43,712 $67,777 $171,933 $245,933 Operating expenses (30,789) (28,126) (121,622) (122,511) Administration and other (536) (992) (2,158) (3,595) Crown royalties (65) (11,297) (65) (23,696) Interest on long-term debt (2,636) (2,226) (9,629) (7,654) Capital taxes (235) (59) (472) (239) ------------------------------------------------------------------------- 9,451 25,077 37,987 88,238 Capital expenditures (16,305) (10,109) (55,402) (43,347) Additional borrowings 11,000 0 11,000 7,876 Site restoration costs 0 (57) (379) (382) Mining reclamation trust (174) (155) (658) (538) Financing costs 0 0 0 (1,407) Reserve adjustments (3,835) (1,017) 9,408 (4,865) ------------------------------------------------------------------------- Base for Trust Royalty $137 $13,739 $1,956 $45,575 ------------------------------------------------------------------------- Trust Royalty at 99% $136 $13,602 $1,937 $45,119 Interest income of Trust 2 1 8 5 Administrative expenses of Trust (138) (103) (595) (574) ------------------------------------------------------------------------- Distributable income from operations $0 $13,500 $1,350 $44,550 ------------------------------------------------------------------------- Distributable income from operations per Trust Unit $0.00 $0.50 $0.05 $1.65 -------------------------------------------------------------------------

To: Kerm Yerman who wrote (15010)	1/26/1999 2:47:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Enermark Income Fund - Notice of rights offering EnerMark Income Fund - EIF.UN, TSE, ME CALGARY, Jan. 26 /CNW/ - EnerMark Income Fund (the ''Fund'') announces that it is issuing to holders of its trust units of record at the close of business on February 4, 1999, Rights to subscribe for trust units. Each holder of trust units is entitled to one (1) Right for each trust unit held on the record date. Five (5) Rights will entitle the holder to purchase one (1) trust unit of the Fund at a price of $2.45 per trust unit until 4:00 pm local time at the place of exercise on February 26, 1999. If all of the Rights are exercised, the Fund will issue 21,433,496 trust units and receive net proceeds of approximately $50.5 million. The Rights Offering Circular and Rights Certificates are expected to be mailed to the Fund's unitholders on February 5, 1999. CIBC Wood Gundy Securities Inc. will act as dealer manager to form a facilitating dealer group to solicit subscriptions for the clients. The Toronto Stock Exchange and the Montreal Exchange have conditionally approved the listing of the Rights which are expected to commence trading on February 2, 1999.

To: Kerm Yerman who wrote (15010)	1/26/1999 2:49:00 AM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

ENERGY TRUSTS / Westrock Energy Income Fund I - Notice Of Rights Offering Westrock Energy Income Fund I - WRE.un, TSE, ME CALGARY, Jan. 26 /CNW/ - Westrock Energy Income Fund I (the ''Fund'') announces that it is issuing to holders of its trust units of record at the close of business on February 4, 1999, Rights to subscribe for trust units. Each holder of trust units is entitled to one (1) Right for each trust unit held on the record date. Five (5) Rights will entitle the holder to purchase one (1) trust unit of the Fund at a price of $4.80 per trust unit until 4:00 pm local time at the place of exercise on February 26, 1999. If all of the Rights are exercised, the Fund will issue 1,250,915 trust units and receive net proceeds of approximately $5.8 million. The Rights Offering Circular and Rights Certificates are expected to be mailed to the Fund's unitholders on February 5, 1999. CIBC Wood Gundy Securities Inc. will act as dealer manager to form a facilitating dealer group to solicit subscriptions for the clients. The Toronto Stock Exchange and the Montreal Exchange have conditionally approved the listing of the Rights which are expected to commence trading on February 2, 1999.

To: Kerm Yerman who wrote (15010)	1/26/1999 2:51:00 AM
From: Kerm Yerman	Respond to of 15196

ENERGY TRUSTS / Westrock Energy Income Fund II - Notice Of Rights Offering Westrock Energy Income Fund II - WRF.un, TSE, ME CALGARY, Jan. 26 /CNW/ - Westrock Energy Income Fund II (the ''Fund'') announces that it is issuing to holders of its trust units of record at the close of business on February 4, 1999, Rights to subscribe for trust units. Each holder of trust units is entitled to one (1) Right for each trust unit held on the record date. Five (5) Rights will entitle the holder to purchase one (1) trust unit of the Fund at a price of $5.80 per trust unit until 4:00 pm local time at the place of exercise on February 26, 1999. If all of the Rights are exercised, the Fund will issue 1,885,450 trust units and receive net proceeds of approximately $10.5 million. The Rights Offering Circular and Rights Certificates are expected to be mailed to the Fund's unitholders on February 5, 1999. CIBC Wood Gundy Securities Inc. will act as dealer manager to form a facilitating dealer group to solicit subscriptions for the clients. The Toronto Stock Exchange and the Montreal Exchange have conditionally approved the listing of the Rights which are expected to commence trading on February 2, 1999.

To: Kerm Yerman who wrote (15010)	1/26/1999 2:53:00 AM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Netalco Corp - Name Change & Share Consolidation SADDLE RESOURCES INC. - NETALCO COMPLETES NAME CHANGE, CONSOLIDATION CALGARY, ALBERTA-- Netalco Corporation ("Netalco") today announced that it has received final regulatory approval from the Alberta Stock Exchange ("ASE") to change its name to Saddle Resources Inc. and to consolidate its shares on the basis of five old shares for one new share. The Company will begin trading on the ASE on Tuesday, January 26, 1999 as Saddle Resources Inc. under the trading symbol "SRI". Saddle will have a total of 7,735,716 issued and outstanding shares following the consolidation. In other news, Saddle is pleased to announce that Kevin D. Bibault has joined the Company in the position of Manager of Engineering. Mr. Bibault is a professional Engineer with 10 years of industry experience specializing in reserve analysis, reservoir exploitation and production acquisitions. Netalco Corporation granted Mr. Bibault stock options to acquire 400,000 shares (80,000 shares following the consolidation) as previously announced on January 20, 1999.

To: Kerm Yerman who wrote (15010)	1/26/1999 9:04:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

ENERGY TRUSTS / Canadian Oil Sands Trust Announces a Distribution of $0.10 per Trust Unit for the Fourth Quarter of 1998 CALGARY, Jan. 26 /CNW/ - Canadian Oil Sands Trust announced a fourth quarter distribution of $0.10 per Trust Unit, resulting in cumulative distributions for 1998 totalling $0.65 per unit. Chuck Shultz, Chairman of Canadian Oil Sands, summarized the 1998 results with the following comments: ''Even though crude oil prices were the lowest since 1986, Canadian Oil Sands has made distributions of $0.65 per unit and strengthened its balance sheet for future growth with the issue of equity and its long term debt arrangements. The Syncrude joint venture set a new annual production record of 76.7 million barrels in 1998, continuing their record of year-over-year growth while substantially containing capital spending to reflect the current economic environment.'' West Texas Intermediate crude oil prices averaged US$12.92 for the fourth quarter compared to US$19.94 in 1997. Overall, the average WTI price for the year was down 30 percent compared to 1997. The trading price of Trust Units ranged from $21.45 to $17.00 in response to the decline in oil prices and closed the year at $17.75. Canadian Oil Sands' balance sheet at the end of 1998 remains strong with $83 million of cash on hand and $250 million in unused lines of credit. Distributable Income during the fourth quarter totals $2.7 million ($0.10 per unit) compared to $13.8 million ($0.60 per unit) while the total for 1998 was $17.6 million ($0.65 per unit) compared to $41.4 million ($1.80 per unit) for 1997. For the fourth quarter, cash flow from operations was $11.0 million in 1998 compared to $24.9 million in 1997 while capital expenditures were $11.7 million in 1998 compared with $7.5 million in 1997. Syncrude Operations Syncrude's production for the fourth quarter of 1998 totalled 20.8 million barrels of Syncrude Sweet Blend, a drop of 4% compared to the 21.6 million barrels produced in 1997. During the fourth quarter of 1998, a diluent recovery unit shutdown resulted in a seven day disruption in operations and a loss of 900,000 barrels of production. Syncrude's unit operating costs for the fourth quarter of $11.82 per barrel are higher than the $11.14 achieved in 1997 due to the reduced production volume only partially offsetting cost savings within a relatively fixed cost structure. The deferral of overburden stripping continues to offset the impact of higher natural gas costs in 1998 with total operating costs substantially unchanged from 1997. Syncrude's capital expenditures totalled $139 million during the fourth quarter. Strategic expenditures focused on the North Mine's second train and the development of the Aurora Mine while the sustaining expenditures on the Mildred Lake plant aggregated $33 million. In October, the Syncrude Owners approved the 1999 operating and capital budgets including the Aurora Mine development and the installation of a vacuum distillation unit at the Mildred Lake upgrader. CANADIAN OIL SANDS TRUST Highlights Three Months Year Ended Ended December 31 December 31 ----------------- ------------ 1998 1997 1998 1997 ------ ------ ------ ------ (thousands of dollars except per unit amounts) Net Income $2,568 $16,922 $18,010 $51,247 Per Trust Unit $0.10 $0.74 $0.68 $2.23 Funds From Operations $10,970 $24,860 $48,022 $78,049 Per Trust Unit $0.41 $1.08 $1.81 $3.39 Cash Distribution $2,700 $13,800 $17,550 $41,400 Per Trust Unit $0.10 $0.60 $0.65 $1.80 Daily Average Sales (bbls.) Syncrude Sweet Blend 23,166 23,002 20,997 20,703 Average Selling Price per barrel West Texas Intermediate (U.S.) $12.92 $19.94 $14.43 $20.61 ------ ------ ------ ------ ------ ------ ------ ------ Before Hedging $18.59 $27.48 $20.40 $27.82 Hedging - Oil Price - 0.63 0.59 (0.33) - Currency (0.80) 0.19 (0.39) 0.36 ------ ------ ------ ------ $17.79 $28.30 $20.60 $27.85 ------ ------ ------ ------ ------ ------ ------ ------ Financial Performance Canadian Oil Sands' revenues were $38.6 million for the fourth quarter of 1998 compared to $60.0 million in 1997, a 35% drop. The revenues in the fourth quarter of 1998 reflect the selling 2.1 million barrels of oil at an average price of Cdn$18.59 per barrel compared to selling 2.1 million barrels at an average price of Cdn$27.48 per barrel in 1997. The fourth quarter volumes in 1998 are essentially unchanged while the price of West Texas Intermediate crude oil averaged US$12.92 during the quarter compared to US$19.94 in 1997, resulting in a $21 million drop in crude oil revenue before hedging activity. Canadian Oil Sands' share of Syncrude production averaged 23,166 barrels per day during the fourth quarter of 1998 compared to 23,002 barrels in 1997. Canadian Oil Sands' fourth quarter operating costs totalled $25.1 million ($11.77 per barrel) compared to $23.5 million ($11.12 per barrel) for 1997. The operating costs incurred are higher due to a furnace tube rupture in a diluent recovery unit and higher natural gas prices. Compared to the $9.4 million incurred in the fourth quarter of 1997, Crown Royalties for the fourth quarter of 1998 were substantially eliminated by the weak operating profits and higher Crown Royalty investment credits. The Crown Royalty investment credits were introduced, effective January 1, 1997, to encourage further investment in the development of Alberta's oil sands. Canadian Oil Sands' capital expenditures for the fourth quarter of 1998 total $11.7 million compared to $7.5 million in 1997. Distributable Income for the fourth quarter of 1998 includes a $3.8 million provision for the expansion financing which results in the aggregate funding of capital expenditures from operating cash flow in 1998 being $31.9 million compared to $35.4 million in 1997. There is $1.9 million of deferred payments related to 1998 lease acquisitions included in the $17.6 million of expansion financing utilized in 1998. Corporate Activities Risk Management: Canadian Oil Sands is subject to considerable U.S. dollar exposure attributable to the sale of crude oil. To reduce this exposure to exchange rate fluctuations, Canadian Oil Sands has entered into currency exchange contracts at an average rate of US$0.693 covering 50% of its crude oil sales for the next five years and 35% of its sales for an additional thirteen years. In addition, it has granted a call option to a counter-party for a further 15% of its sales revenue at an exchange rate of US$0.693 for five years commencing in 2003. Although Canadian Oil Sands oil sales revenue benefited by $2.8 million from the weak Canadian dollar during the fourth quarter, the benefit has been offset by the $1.7 million payment required to settle currency exchange contracts. Canadian Oil Sands' currency exchange commitments required that US$17 million currency be settled at US$0.693 per Canadian dollar during the fourth quarter while the average exchange rate was US$0.648. Canadian Oil Sands has received $4.8 million from the settlement of its currency exchange contracts since its inception through to the first quarter of 1998 and has made payments totalling $3.1 million in the last three quarters of 1998. As at January 22, 1999, the mark-to-market deficiency of its currency contracts was US$62 million with the spot exchange rate at approximately US$0.659. While the decline in the mark-to-market value of the currency exchange contracts reflects the current weakness in the Canadian currency relative to the US dollar, Canadian Oil Sands' revenues, net of currency exchange contract settlements, benefit from the weakness as only 50% of its estimated revenues are hedged. Excluding the $117,000 in credit standby charges, interest costs on the US$70 million of 7.625% Senior Notes during the quarter were $1.7 million, reflecting a US fixed rate of 5.95% for the quarter. Canadian Oil Sands has swapped its 7.625% interest obligation to a 5.95% fixed rate contract for the remaining eight years of the Senior Notes. In the 1997 Annual Report to Unitholders, Canadian Oil Sands has described the process and timeline being followed in addressing the potential impact of the Year 2000 Issue. The related projects are proceeding as planned and will be completed within the appropriate time frames. Additional details of Canadian Oil Sands' Year 2000 readiness will be available in the 1998 Annual Report to Unitholders. Unitholder Rights Plan: On November 30, 1998, Canadian Oil Sands Trust adopted a unitholders rights plan which requires the unitholders' approval at the Trust's next annual meeting. The Plan provides the Trust, its manager and unitholders with more time to consider any unsolicited take-over bid in order to maximize unitholder value. When a person acquires 20% or more of the Trust's outstanding units without complying with the ''Permitted Bid'' provisions of the Plan, the rights allow unitholders, other than the person holding 20% or more, to acquire additional units at a 50% discount to the market price. Income taxes: Since its inception, the Trust has designated all of its distributions, $3.38 per Trust Unit, as a ''return of capital''. The Trust is able to distribute cash as a ''return of capital'' due to its significant tax pools, which are expected to shelter distributions for at least the next five years. ''Return of capital'' distributions result in the Unitholder's adjusted cost base of the trust unit being reduced by the amount of such distributions. Such distributions also enable Unitholders who are non-residents of Canada to receive such amounts exempt from Canadian withholding tax. The income tax liability of each Unitholder will depend on the Unitholder's specific circumstances and, accordingly, each Unitholder should obtain independent advice regarding their specific income tax status. Outlook for 1999 Syncrude anticipates its annual production in 1999 will total 82 million barrels of Syncrude Sweet Blend at an expected unit operating cost of $13.27 per barrel. Capital expenditures are expected to total approximately $700 million in 1999. With the price of crude oil at or near historic lows, capital spending coupled with Syncrude's pursuit of lower operating costs as well as improved bitumen recovery and yield factors become increasingly significant to enhancing the value of our Trust Units. Based on Syncrude's current expectations for 1999 and an average oil price of US$15.00 for the year, Canadian Oil Sands anticipates that its 1999 distributions will approximate $0.70 per Trust Unit. For every US$1.00 change in the West Texas Intermediate oil price, $0.50 per barrel change in Syncrude's unit operating cost, 2 million barrel change in Syncrude's production or US$0.01 change in the Canadian/US dollar exchange rate, Canadian Oil Sands' 1999 distributions will be affected by $0.40, $0.14, $0.12 and $0.06 per unit, respectively. In light of the current WTI price being less than US$15.00, Syncrude is re-evaluating its capital expenditures and operating costs for potential reductions or deferrals. To the extent reductions or deferrals are realized, these distribution sensitivities may change. Unit Trading Activity Canadian Oil Sands' units trade on the Toronto Stock Exchange under the symbol CO.UN Three Months Ended ------------------------------------------------------ December 31, September 30, June 30, March 31, 1998 1998 1998 1998 ------------ ------------- -------- --------- Unit Price ($) - High 21.45 20.75 23.45 27.25 - Low 17.00 15.00 18.50 19.60 - Close 17.75 20.25 20.85 22.40 Volume Traded (in 000's) 1,393 2,987 2,793 3,403 Average Number Of Units Outstanding (in 000's) 27,000 27,000 27,000 24,822 Certain information included in this Quarterly Report regarding, but not limited to, cash distributions, production targets, crude oil prices, currency exchange rates, unit operating costs and capital expenditures, is forward looking and based upon assumptions and anticipated results that are subject to uncertainties. Should one or more of these uncertainties materialize or should the underlying assumptions prove incorrect, actual results may vary significantly from those expected. CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF TRUST ROYALTY AND DISTRIBUTABLE INCOME (unaudited) Three Months Year Ended Ended December 31 December 31 ----------------- ------------ 1998 1997 1998 1997 ------ ------ ------ ------ (thousands of dollars except per unit amounts) Operating Cash Flow Revenues $37,521 $59,983 $157,512 $210,496 Operating expenses (25,083) (23,528) (103,432) (103,768) Administration expenses (692) (1,022) (2,893) (3,343) Crown royalties (55) (9,420) (55) (20,184) Interest expense (1,835) (1,011) (6,672) (4,270) Large Corporations Tax (112) (82) (395) (318) -------- -------- -------- -------- 9,744 24,920 44,065 78,613 Capital expenditures (11,702) (7,538) (49,550) (35,358) Utilization of Expansion Financing (1) 3,800 - 17,600 - Mining reclamation trust (230) (215) (816) (763) Site restoration costs - (49) (323) (325) Reserve - future production costs 144 (3,092) 3,317 (3,282) -------- -------- -------- -------- Base for Trust Royalty $1,756 $14,026 $14,293 $38,885 -------- -------- -------- -------- -------- -------- -------- -------- Trust Royalty at 99% $1,738 $13,886 $14,150 $38,496 Distribution of Surplus Cash - - - 3,353 Interest earned on Trust's short term investments 1,073 - 3,781 - Administration expenses of Trust (69) (88) (381) (451) -------- -------- -------- -------- Distributable income $2,742 $13,798 $17,550 $41,398 -------- -------- -------- -------- -------- -------- -------- -------- Distributable income per Trust Unit $0.10 $0.60 $0.65 $1.80 -------- -------- -------- -------- -------- -------- -------- -------- (1) Includes $1.9 million of deferred payments related to lease acquisitions. CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF CHANGES IN CASH POSITION (unaudited) Three Months Year Ended Ended December 31 December 31 ----------------- ------------ 1998 1997 1998 1997 ------ ------ ------ ------ (thousands of dollars) Cash provided by (used in): Operating activities: Net income $ 2,568 $ 16,922 $ 18,010 $ 51,247 Items not involving cash: 8,402 7,938 30,012 26,802 ------- -------- -------- -------- Funds from operations 10,970 24,860 48,022 78,049 Net change in deferred items (278) 299 (629) (1,067) Site restoration costs - (49) (323) (325) Change in non-cash working capital (5,043) 1,831 (7,458) 396 ------- -------- -------- -------- 5,649 26,941 39,612 77,053 ------- -------- -------- -------- Financing: Repayment of long-term debt - - - (95,000) Issuance of Senior Notes (US$70MM-7.625%) - - - 96,278 Cash distribution to Unitholders (2,700) (13,800) (17,550) (41,400) Issuance of Trust Units - - 91,950 - ------- -------- -------- -------- (2,700) (13,800) 74,400 (40,122) ------- -------- -------- -------- Investments: Reclamation trust (230) (215) (816) (763) Capital expenditures (11,702) (7,538) (49,550) (35,358) ------- -------- -------- -------- (11,932) (7,753) (50,366) (36,121) ------- -------- -------- -------- Increase (decrease) in cash (8,983) 5,388 63,646 810 Cash at beginning of period 92,563 14,546 19,934 19,124 ------- -------- -------- -------- Cash at end of period $ 83,580 $ 19,934 $ 83,580 $ 19,934 ------- -------- -------- -------- ------- -------- -------- -------- CANADIAN OIL SANDS TRUST CONSOLIDATED BALANCE SHEET December 31, 1998 December 31, 1997 ----------------- ----------------- (thousands of dollars) ASSETS Current assets: Cash $ 83,580 $ 19,934 Restricted cash - 1,334 Accounts receivable 13,831 22,254 Inventories 11,486 10,424 Prepaid expenses 446 266 ----------------- ----------------- 109,343 54,212 Reclamation trust 1,994 1,178 Capital assets, net 445,636 423,559 Deferred Charges 12,584 6,029 ----------------- ----------------- $ 569,557 $ $484,978 ----------------- ----------------- ----------------- ----------------- LIABILITIES AND UNITHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 13,690 $ 18,561 Unit distribution payable 2,700 13,800 Current portion of other liabilities 2,825 675 ----------------- ----------------- 19,215 33,036 Other liabilities 11,853 13,690 Long-term debt 107,100 100,100 Future site reclamation and restoration costs 9,019 8,192 Preferred shares of subsidiary 2,000 2,000 ----------------- ----------------- 149,187 157,018 Unitholders' equity 420,370 327,960 ----------------- ----------------- $569,557 $484,978 ----------------- ----------------- ----------------- ----------------- CANADIAN OIL SANDS TRUST CONSOLIDATED STATEMENT OF INCOME AND UNITHOLDERS' EQUITY (unaudited) Three Months Year Ended Ended December 31 Ended December 31 ------------------- ------------------- 1998 1997 1998 1997 --------- --------- --------- --------- (thousands of dollars except per unit amounts) Revenues: Syncrude Sweet Blend $37,819 $59,772 $157,100 $209,525 Other 775 213 4,193 979 --------- --------- --------- --------- 38,594 59,985 161,293 210,504 --------- --------- --------- --------- Expenses: Operating 25,083 23,528 103,432 103,768 Administration 760 1,110 3,273 3,794 Crown royalties 55 9,420 55 20,184 Interest 1,835 1,011 6,672 4,270 Depletion, depreciation and amortization 8,105 7,857 29,156 26,703 Large Corporations Tax 112 82 395 318 Dividends on preferred shares of subsidiary 76 55 300 220 --------- --------- --------- --------- 36,026 43,063 143,283 159,257 --------- --------- --------- --------- Net income for the period 2,568 16,922 18,010 51,247 Unitholders' equity, beginning of period 420,502 324,838 327,960 318,113 Proceeds on issue of 4,000,000 Trust Units - - 91,950 - Cash distributions to Unitholders (2,700) (13,800) (17,550) (41,400) --------- --------- --------- --------- Unitholders' equity, end of period $420,370 $327,960 $420,370 $327,960 --------- --------- --------- --------- --------- --------- --------- --------- Net income per Trust Unit $0.10 $0.74 $0.68 $2.23 --------- --------- --------- --------- --------- --------- --------- --------- Distributable income per Trust Unit $0.10 $0.60 $0.65 $1.80 --------- --------- --------- --------- --------- --------- --------- --------- Canadian Oil Sands Investments Inc. PO Box 2850 150 - 9 Avenue SW Calgary AB T2P 2S5 Canada Units Listed - Symbol: CO.UN The Toronto Stock Exchange

To: Kerm Yerman who wrote (15010)	1/26/1999 9:40:00 PM
From: Kerm Yerman	Respond to of 15196

CORP ANNOUNCEMENT / Heritage Oil Corporation To Trade On The Toronto Stock Exchange CALGARY, Jan. 26 /CNW/ - Heritage Oil Corporation announces that its Class ''A'' common shares and Class ''A'' common share purchase warrants will commence trading on Wednesday, January 27, 1999 on The Toronto Stock Exchange. The shares will trade under the symbol ''HOC.A'' and the warrants will trade under the symbol ''HOC.WT''. Heritage has a total of 14,409,499 Class ''A'' common shares and 2,410,189 Class ''A'' common share purchase warrants issued and outstanding. Each warrant entitles the holder thereof to acquire one Class ''A'' common share of Heritage at any time until June 16, 1999 at an exercise price of $2.25 (Canadian). Heritage is an international oil and gas corporation whose principal properties are located in Oman, Angola, The Republic of the Congo and Uganda. Heritage's head office is located at 2800, 715 - 5th Avenue S.W., Calgary, Alberta, T2P 2X6.