03:08:16 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Energy Summary for Aug. 11, 2014

2014-08-11 20:10 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery, the benchmark in North America, added 43 cents to $98.08 on the New York Merc, while Brent for September, the benchmark in Europe, lost 34 cents to $104.68 (all figures in this para U.S.). Western Canadian Select, Canada's heavy oil benchmark, traded at a discount of $18 to WTI ($80.08), up from a discount of $18.90. Natural gas for September, the international benchmark, added 0.3 cent to $3.96. The TSX energy index added a fraction to close at 313.71.

Derek Evans's Pengrowth Energy Corp. (PGF) lost eight cents to $6.73 on 1.98 million shares. On Friday, it lost one cent, following its Thursday after-market release of its second quarter results. It also held a conference call in which it touted progress at the Lindbergh thermal oil project in Alberta. The project is on time and on budget (following a budget increase in May) for first steam late in the fourth quarter and production in early 2015. (Lindbergh is expected to produce 12,500 barrels a day in its first phase, then see phased expansions to 50,000 barrels a day by the end of 2018.) As well, Pengrowth has signed a 10-year take-or-pay contract with Husky Energy Inc. (HSE: $32.35) to move Lindbergh's production through its pipeline system to Hardisty, Alta., starting in mid-2015. President and chief executive officer Evans praised the deal during the conference call. "The agreement with Husky provides us with a great deal of flexibility," he said. Pengrowth has not dedicated all its production to the deal and can still use its current system of truck-to-rail if that is more profitable. The oil that does go through Husky's system will have several options for further transportation from Hardisty, including railways and pipelines, so Pengrowth can choose the most economic option. To facilitate the tie-in to Husky's system, Pengrowth plans to build a 15-kilometre pipeline to deliver diluted bitumen from Lindbergh and a second pipeline to bring diluent back. These infrastructure projects were not included in the company's $630-million budget for phase 1 (as raised from $590-million in May, for different reasons), but Mr. Evans said the cost will be about $20-million. He added that the bitumen produced from Lindbergh is lighter than the bitumen being produced farther north, in the more famous Fort McMurray area. This means that less diluent is needed to make the product flow through a pipeline.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2024 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.


Comments for this item are closed