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by Stockwatch Business Reporter

West Texas Intermediate crude for August delivery added 83 cents to $47.43 on the New York Merc, while Brent for September added 84 cents to $48.80 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.90 to WTI ($33.53), down from a discount of $13.70. Natural gas for August added 2.2 cents to $2.786. The TSX energy index added a fraction to close at 190.63.

Advantage Oil & Gas Ltd. (AAV), a low-cost producer in the Alberta Montney, added 31 cents to $7.39 on 3.11 million shares, after releasing a production update for the second quarter. Total production came to 210 million cubic feet equivalent a day, or 35,000 barrels of oil equivalent a day, which is at the high end of Advantage's full-year guidance of 31,670 to 35,000 barrels a day. Advantage is not at all worried about achieving its guidance because it has 24 wells waiting on the sidelines (10 completed and 14 drilled but uncompleted). These wells are enough, says Advantage, to meet the full-year guidance. Even so, it plans to start a 13-well drill program this month. Public data show that it has licensed six wells since mid-June. Some of the wells this year will be for production in 2017, a year for which Advantage has already set tentative guidance of about 31,900 barrels a day. It had not set any guidance for beyond 2017, but gave investors a clue today when it said it had secured transportation capacity for about 48,800 barrels a day by early 2019, adding that its secured capacity from 2016 to 2019 equals 95 to 105 per cent of estimated annual production. Before Advantage can produce that much, it will have to expand its wholly owned gas plant at its core Glacier asset. Advantage wants to boost the plant's capacity to about 58,300 barrels a day from 41,600 by the second quarter of 2018, and said today that work is on schedule.

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