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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (1099)	5/31/1999 8:50:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 1261

CORPORATE NEWS RELEASE „„ TRACER PETROLEUM CORPORATION „„ „„ NASDAQ Symbol: TCXXF „„ Dateline: Calgary, AB, Canada „„ VSE Symbol: TPC „„ Date: Monday, May 31, 1999 TRACER ANNOUNCES RESULTS FOR FIRST QUARTER OF 1999 (all funds in Cdn. $ unless otherwise stated) TRACER PETROLEUM CORPORATION (“Tracer” or the “Company”) announces the results of operations for the period ending March 31, 1999. Net loss for the three month period was $339,979, or $0.08 per share, versus a loss of $109,841, or $0.03 per share for the first quarter of 1998. This loss is primarily due to a decrease in oil and gas revenues as a result of lower oil prices, and an increase in administrative expenses to $239,211, versus $158,358 for 1998. The increase in administrative expenses can be primarily attributed to costs incurred by the Company in the pursuit of new projects in Iran and elsewhere. Revenue from oil and gas operations decreased to $318,504 (1998 - $544,109), reflecting the drop in oil prices during 1998 which continued through the first quarter. Revenue was also negatively impacted by reduced recoveries from uplift and other operational sources. Further, initial indications of natural decline in the OK Block fields have been seen. Oil and gas expenses were reduced to $425,510, versus $703,692 for the same period in 1998. This is mainly due to the reduction in the carried interest past cost allocation for the Company's 4.25% interest in the Ogan Komering Block (“OK Block”). Gross production from the OK Block in Indonesia has declined to approximately 12,300 barrels per day. However, the operator of the block, Talisman Energy, has initiated work to drill 8 to 10 development wells, and plans commencement of the full-scale waterflood project during 1999. Furthermore, it is understood that negotiations on gas pricing for the previously-suspended OK gas project have been reopened at the request of Pertamina. The first quarter of 1999 saw Tracer management redouble its efforts to acquire new, higher potential projects outside of the current core area of Indonesia. On January 14 th , the Company announced an agreement with the Mullins Group to form a joint venture, Tracer Petroleum International (“TPI”), for the purpose of acquiring certain oil and gas development opportunities in Iran. During the quarter progress was made in positioning the Company as a viable partner in such developments and presenting TPI to the Iranian government authorities, with positive response. As announced in December, 1998, an agreement had been executed whereby the Company was given the right to participate in the Sungai Gelam A, B, & D Technical Assistance Contract (“TAC”) located in South Sumatra, Indonesia. Efforts continued during the quarter to finalize arrangements with the operator's creditors and seek the initial financial backing prior to commencement of work. To date, while verbal agreement of all parties has been achieved, agreement has yet to be reached on adjustments related to the operator's accounting practices, and project financing tasks remain. Jim