Montreal

Gulfmark Energy Group Inc. of San Antonio, TX, said it has obtained financing from Notre-Dame Capital Inc. of Montreal to support development of its Eagle Ford Shale assets. The company said it intends to drill through the Escondido, Olmos, San Miguel, Austin Chalk and Eagle Ford formations. “We have yet to assess all of the undeveloped potential opportunities to expand our operations utilizing horizontal wells with multi-stage fracturing technologies,” said CEO Michael Ward. “Multiple targets have been identified; however, several other opportunities are currently under evaluation and analysis. This financing will allow us to explore all resources available in our current asset base.” Gulfmark operations are currently focused on western South Texas. Terms of the financing were not disclosed.

Montreal-based producer Gastem Inc. said Thursday its Ross No.1 vertical well in the New York portion of the Marcellus Shale has been completed and is testing 150 MMcf/d after four weeks of “extended flow.”

Regulatory and enforcement officials are seeking more information from the Bank of Montreal (BMO) related to nearly C$700 million in natural gas trading losses the bank reported in April, BMO said in its fiscal third quarter earnings report last week.

Regulatory and enforcement officials are seeking more information from the Bank of Montreal (BMO) related to nearly C$700 million in natural gas trading losses the bank reported in April (see Daily GPI, May 21; April 30), BMO said in its third quarter earnings report.

With the dust now settling and the facts coming into clearer focus following the Bank of Montreal’s (BMO) announcement late last month of significant losses on natural gas trades, the fourth largest Canadian bank warned investors Thursday that its initial report of losses from “out-of-the-money options” of between C$350 million and C$450 million (US$313.70 million to US$403.33 million) has been increased to C$680 million (US$623.80 million).

With the dust now settling and the facts coming into clearer focus following the Bank of Montreal’s (BMO) announcement late last month of significant losses on natural gas trades, the fourth largest Canadian bank warned investors Thursday that its initial report of losses from “out-of-the-money options” of between C$350 million and C$450 million (US$313.70 million to US$403.33 million) has been increased to C$680 million (US$623.80 million).

A growing shortfall of natural gas will propel oil and gas services as the top Canadian growth sector through 2004, Bank of Montreal (BOM) economists reported Thursday. Meanwhile, Canadian-based Scotiabank Group’s latest commodity report index noted that declining U.S. natural gas deliverability should keep prices “strong” through next year.

A growing shortfall of natural gas will propel oil and gas services as the top Canadian growth sector through 2004, Bank of Montreal (BOM) economists reported Thursday. Meanwhile, Canadian-based Scotiabank Group’s latest commodity report index noted that declining U.S. natural gas deliverability should keep prices “strong” through next year.

SRI Oil & Gas Ltd., a private Montreal company, agreed withCalgary-based Hornet Oil & Gas Ltd. to acquire all outstandingshares of Hornet in exchange for SRI shares. SRI already owns 11.8%of private company Hornet’s common shares. It is estimated about1,650,000 common shares of SRI will be issued in the event theoffer is successful. The exchange ratio will be based on the netvalue of each entity Dec. 31, 1998.