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by Stockwatch Business Reporter

West Texas Intermediate crude for June delivery lost 62 cents to $59.88 on the New York Merc, while Brent for June lost 22 cents to $66.69 (all figures in this para U.S.). Western Canadian Select traded at a discount of $8.80 to WTI ($51.08), down from a discount of $8.20. Natural gas for June added 7.3 cents to $3.00, back at $3 for the first time in four months. The TSX energy index lost 1.89 points to close at 220.57.

Trent Yanko's Legacy Oil + Gas Inc. (LEG) lost two cents to $2.75 on 8.08 million shares, as bad news slightly offset good news in its first quarter financials. Cash flow of 14 cents a share and production of 24,619 barrels of oil equivalent a day were behind analysts' predictions of 17 cents a share and 24,900 barrels a day, respectively. The good news was that Legacy got a break from its lenders. They reduced the company's bank line by a relatively small amount, to $725-million from $800-million, and they relaxed their covenants through to June 30, 2016. As of March 31, Legacy was $649-million drawn on its facility, compared with $620-million as of Dec. 31. Total net debt rose over this period to $895-million from $856-million. Legacy is trying to sell assets to try to bring its debt down. While it looks for buyers, it is focusing in 2015 on its "great results and industry-leading results in the [Saskatchewan] Midale play," as president and CEO Yanko put it in a conference call this morning. In case anybody missed his optimistic outlook the first time, he further clarified that the play has "very, very strong results." Legacy's most recent wells there averaged 300 barrels a day over their first month, double the type curve. Toward the end of the quarter, Legacy finished building a new oil battery in the Pinto Midale, "and that battery will be the foundation of where our capital program is for the remainder of the year," said Mr. Yanko.

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