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Gold/Mining/Energy : CARMANAH RESOURCES LTD ( CKM - TSE ) -- Ignore unavailable to you. Want to Upgrade?

To: worldtraveller who wrote (252)	2/23/1999 9:18:00 PM
From: Orwell	Respond to of 269

The PR came out Friday evening, luckily one could still get out on Monday a.m. for $0.40. CKM is shutting down operations in Indonesia, they have high fixed costs due to the nature of their offshore setup. At current oil prices, they were basically making zero dollars. They blew millions drilling for new wells and have not much to show for it. They are down to their last shot in Venezuala, and no word yet on what production if any will result there. In the meantime, they have debt repayments coming due shortly. Since they are not producing, they have no $ to pay. Exxon walked away from their portion of the Indonesian properties, so not likely that any other buyers will step forward at this time. So CKM is stuck. Needless to say they have no discretionary dollars around in order to get another well going. So they are out of ammunition, and in danger of going out of business. Even the stock is too low now to do any financing. I think CKM had a good thing going, but those in charge did not manage it well. Of course, the oil prices sunk them too, but one must anticipate cycles. They couldn't get drill rigs during the boom, and were spending top dollar at the end of the cycle to drill. All games are won and lost before they begin, the smart players know how smell out the big wells, how to evaluate properties, when to hedge, when to conserve dollars, etc. I don't believe CKM did a good job in any of these areas. O.

To: worldtraveller who wrote (252)	2/23/1999 11:49:00 PM
From: Taff	Read Replies (1) \| Respond to of 269

CKM will be turning off the tape in March due to current low oil prices. John This news was released on friday Carmanah Updates Indonesian, Venezuelan Activities CALGARY, ALBERTA--Carmanah Resources Ltd. (''CKM'' - TSE) announces today that its wholly-owned subsidiary, GFB Resources (Java) Limited, the operator of and 100 percent owner of the Bawean Production Sharing Contract (''Bawean PSC'') in the Java Sea offshor e Indonesia, which contains the Camar Field (''Camar''), has initiated plans to temporarily suspend production operations at Camar during the first week of March, 1999. The decision has been taken in consultation with Pertamina, the Indonesian state oil c ompany, and as a result of persistent low oil prices, the protracted Asian economic crisis, and lower production levels which combined with low oil prices result in insufficient revenue in the short term to generate positive cash flow given the extent of fixed costs as a percentage of total operating costs at Camar. Efforts to reduce fixed costs associated with the storage and accommodation tanker (''SAT'') Camar Ayu and the related mooring system to satisfactory levels in current circumstances were unsuccessful and accordingly the Camar Ayu is scheduled for redeliver y to its owners on or about March 6, 1999. Prior thereto, a lifting of approximately 125,000 barrels of crude oil for sale to Pertamina will occur. A possibility exists this action could be rescheduled if crude oil prices escalate in the short term or production levels currently at around 1800-1900 BOPD increase upon completion of minor remedial work on surface facilities at the MPA-1 well at Camar to eliminate restrictions to the flow rate which have been identified. A notice has been sent to all GFB Java national employees indicating they will remain in the employ of GFB Java pending resolution of Carmanah's plans for the Bawean PSC and Camar. This is a minor cost within total operating costs. GFB Java continues negotiations with a number of companies with respect to their possible participation in the Bawean PSC and anticipates receiving one or a number of proposals by the end of February, 1999. Also, Carmanah's other subsidiaries, GFB Langs a and GFB Natuna are dialoguing with prospective partners on a similar basis and proposals are also anticipated by month-end based on indications thereof from industry members reviewing these properties. There is no guaranteed assurance such proposals w ill be forthcoming on a timely basis nor that they will be acceptable to Carmanah/GFB although Carmanah is satisfied the interested parties are companies with the financial wherewithal and operating capability to be effective partners and/or acquirers of interests up to 100 percent of currently-held participation. Again, Pertamina has been apprised of Carmanah/GFB plans and evidence a high degree of cooperation in assisting Carmanah in achieving its objectives in Indonesia. This includes flexibility i n timetables for achieving commitments related to the Langsa TAC and Natuna PSC. In other developments, Carmanah announces that CGC, the operator of the Onado Area in eastern Venezuela, has initiated testing operations at the ONV-78 well in the Onado Field. It is expected production testing will take 14 - 28 days to complete, after which the well will be placed onstream as quickly as possible with production and sales into existing facilities. New production at Onado is expected to generate positive operating income, even at low oil prices, equal to or greater than that which has recently been realized from Camar, if anticipated well productivity is realized. An Operating Committee Meeting will be held in mid-March to discuss planned activity after ONV-78 test results are in hand and evaluated. The Company's priority remains to be to reduce its interests in some or all of its Indonesian properties in order to enhance overall corporate liquidity. Normal operations for the Company would be affected if either a sale, reduction in interest or othe r form of transaction was not completed in Indonesia. In the interim, Carmanah is investigating certain financing alternatives which would alleviate the identified challenges arising from current industry conditions. Carmanah is a Calgary-based international oil and gas company with significant operating interests in Indonesia and a 23.4 percent non-operated interest at Onado, Venezuela. Its common shares are listed for trading on the Toronto Stock Exchange under th e symbol CKM. Offices are located in Calgary and Jakarta. Contact: Carmanah Resources Ltd. Mr. R.A. Gusella Chairman & Chief Executive Officer (403) 266-4975 (403) 266-5042 carmanah@cadvision.com or Carmanah Resources Ltd. Mr. A. F. Badwi President & Chief Operating Officer (62-21) 7179-0568 (62-21) 7179-3201