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by Stockwatch Business Reporter

West Texas Intermediate crude for January delivery, the benchmark in North America, added $2.85 to $69.00 on the New York Merc, while Brent for January, the international benchmark, added $2.39 to $72.54 (all figures in this para U.S.). Western Canadian Select, Canada's heavy oil benchmark, traded at a discount of $17 to WTI ($52), up from a discount of $17.40. Natural gas for January, the international benchmark, lost 8.1 cents to $4.00. The TSX energy index lost 3.16 points to close at 227.06.

Bellatrix Exploration Ltd. (BXE) lost 16 cents to $4.50 on 3.59 million shares. Nearly six months after telling investors to expect an acquisition, it has finally closed one. The fuss began after Bellatrix raised $172-million through a bought deal at $9.50 in June. It initially planned to raise $250-million at $9.75, but resized this to $150-million at $9.50 one day later, confusing investors, particularly because it did not at first specify how it would use the proceeds. It held a conference call shortly after the bought deal and greenshoe closed in June, and said the money had been raised for an acquisition during the typically slow summer period. Months went by, with no acquisition. Management later explained that the deal it had been pursuing did not go through. All in all, investors did not like Bellatrix's handling of the bought deal, even though the timing now seems surprisingly good or lucky: The financing was done at more than double Bellatrix's current share price, closed less than two weeks before the TSX energy index hit a three-year peak, and will enable a lot more acquisitions now than it would have over the summer, when oil prices were much higher. Bellatrix announced this morning that it has spent $118-million to acquire assets in its core Alder Flats area of west-central Alberta. The acquisition increases its working interest in Mannville liquids-rich gas rights and adds production of about 2,200 barrels of oil equivalent a day. Bellatrix says it can increase production at these assets to 4,500 barrels a day in 2015 for just $16-million. Despite this, it has raised its full-year 2015 guidance only slightly, to a range of 49,000 to 50,000 barrels a day from a range of 48,000 to 49,000 barrels a day. This reflects its new budget, which it has reduced to $400-million from $450-million because of lower commodity prices. Bellatrix does not have any production hedged in 2015.

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