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by Stockwatch Business Reporter

West Texas Intermediate crude for January delivery lost 97 cents to $65.84 on the New York Merc, while Brent for January lost 57 cents to $69.07 (all figures in this para U.S.). Western Canadian Select traded at a discount of $16.30 to WTI ($49.54), down from a discount of $16.15. Natural gas for January added 15.3 cents to $3.80. The TSX energy index lost a fraction to close at 219.10.

Parex Resources Inc. (PXT) added 10 cents to $7.60 on 4.19 million shares. Much of the volume came from a 3.1-million-share block bought by National Bank Financial from ITG Canada. This happened earlier this week as well: On Dec. 2, when Parex lost 33 cents to $7.71 on 5.53 million shares, National Bank bought 3.3 million in one block from ITG. Perhaps National Bank customers are hoping for good results soon from the Tilo-1 well at block LLA-34 in Colombia's Llanos basin, held 55 per cent by Parex and 45 per cent by operator GeoPark. The Tilo-1 well is an attempt to expand the companies' successful Tigana field to the north. They discovered the Tigana field about a year ago and have since taken production to around 11,000 gross barrels of oil a day. Parex could use a good result from Tilo, because it is one of just two or three exploration wells being drilled this quarter, one of which has already turned up dry (the Zampona-1 on the Los Ocarros block, owned with Petroamerica Oil Corp. (PTA: $0.175)). The third possible exploration well this quarter is the Taringa well on Parex's wholly owned Cebucan block, but this may be delayed into 2015. All drilling will pick up during the Colombian dry season from January to April. Depending on the results of the exploration, Parex may decide to add $30-million (U.S.) to its 2015 capital budget, currently set at $330-million (U.S.). Of course, when Parex said all this last month, Brent was trading around $83 (U.S.), close to the company's 2015 assumption of $85 (U.S.). It is now below $70 (U.S.). Unlike many of its peers, Parex set a higher capital budget for 2015 ($330-million (U.S.)) than for 2014 ($290-million (U.S.)), an unusual choice amid lower oil prices. To be fair, Parex is in a better financial position than many of its peers, with no debt and an undrawn $175-million (U.S.) credit facility.

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