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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery added nine cents to $92.75 on the New York Merc, while Brent for October lost 21 cents to $99.16 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.70 to WTI ($79.05), up from a discount of $13.85. Natural gas for October added 10.8 cents to $3.98. The TSX energy index added 1.11 points to close at 311.76.

Trent Yanko's Legacy Oil + Gas Inc. (LEG) added six cents to $7.15 on 3.83 million shares. It has dropped from $8 over the last two weeks and from $10 in mid-June, likely a victim of falling oil prices and heavy rain in one of its core areas, southeast Saskatchewan. Road bans and some flooding are making field conditions difficult for many operators. Legacy said last month that it has recovered from production outages it suffered because of the weather; however, one of its neighbours, Spartan Energy Corp. (SPE: $3.87), said yesterday that its own program in southeast Saskatchewan is still facing delays. Legacy's president and chief executive officer, Mr. Yanko, worked to reassure investors today by presenting at the Peters & Co. Ltd. 18th Annual Energy Conference from Sept. 9 to 11 in Toronto. He seemed particularly excited about the Midale play in Saskatchewan. Legacy's most recent wells have shown 30-day initial production rates of 300 barrels a day, compared with its type curve of 165 barrels a day. Mr. Yanko said that the company is also beating its expectations at its Turner Valley project in Alberta. Reserve evaluator Sproule has estimated 90-barrel-a-day wells that ultimately produce 400,000 barrels, but Legacy's recent wells are averaging 250 to 300 barrels a day and Mr. Yanko thinks they could produce 600,000 to one million barrels. Turner Valley also has a low decline rate, about 4 per cent, so it is a "free cash flow engine." Mr. Yanko said Turner Valley has a lot of expansion potential and Legacy has really just begun its work there. In addition to Turner Valley, the company plans to start directing more attention to the North Dakota Spearfish play, where it expanded by acquiring Corinthian Exploration earlier this summer, and the Saskatchewan Torquay play, where it is finishing its first extended-reach horizontal well. This well is surrounded on all sides by Crescent Point Energy Corp. (CPG: $42.63), which drew attention to the play this spring after likening it to the Bakken.

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