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by Stockwatch Business Reporter

West Texas Intermediate crude for February delivery lost 43 cents to $48.36 on the New York Merc, while Brent for February lost 85 cents to $50.11 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.30 to WTI ($34.06), up from a discount of $14.40. Natural gas for February added 1.9 cents to $2.94. The TSX energy index added a fraction to close at 208.19.

Wayne Foo's Parex Resources Inc. (PXT) added 21 cents to $6.52 on 943,600 shares, after slashing its original $330-million (U.S.) budget for 2015 to a range of $145-million (U.S.) to $155-million (U.S.). This was no surprise. When the Colombia-focused company set the initial budget in November, it stood out as one of the few firms aiming to spend more in 2015 than 2014, when the budget was $290-million (U.S.). Its forecast, however, was based on $85 (U.S.) Brent. The new budget uses $50 (U.S.) to $60 (U.S.) WTI. Despite the 55-per-cent budget cut, the production target has gone down by less than 10 per cent, to 26,500 barrels of oil a day from a range of 28,500 to 30,000 barrels a day. This is still up from the 22,515 barrels a day produced in 2014. Parex did not draw attention to this, but 22,515 is a good bit higher than its guidance of 22,300 barrels a day, thanks in part to a better-than-expected fourth quarter (which Parex did mention). The company says it can spend up to $95-million (U.S.) extra in 2015 if Brent goes above $60 (U.S.). As well as the new budget, Parex also released results from a handful of wells at block LLA-34, owned with GeoPark. They made the Tigana discovery there in late 2013 and quickly took production past 11,000 gross barrels a day. Though Parex did not provide many details about the new wells, it did note that the Tilo-1 exploration well, just north of Tigana, is scheduled for testing this quarter. Parex and GeoPark would not be testing Tilo-1 if they had not found hydrocarbons. Now they will see if the hydrocarbons are commercial.

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