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by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery lost 63 cents to $41.87 on the New York Merc, while Brent for October lost 45 cents to $48.74 (all figures in this para U.S.). Western Canadian Select traded at a discount of $19.30 to WTI ($22.57), up from a discount of $19.40. Natural gas for September lost 7.3 cents to $2.728. The TSX energy index lost 3.21 points to close at 176.97.

Pacific Rubiales Energy Corp. (PRE) added five cents to $4.10 on 1.68 million shares, in its last day of trading under that name. Tomorrow it becomes Pacific Exploration & Production Corp. It announced the name change on Friday, saying the new name reflects "a broader focus in Latin America," which is a delicate way of phrasing the blunt truth: It is going to lose its namesake Rubiales field in Colombia in less than a year. Its contract on the field, which contributes a little over one-third of its 150,000-barrel-a-day production, expires in mid-2016. Pacific Rubiales says it is not worried. It has plenty of other producing assets in Colombia, as well as a handful of production in Peru, exploration properties in five other countries and big dreams of entering Mexico, all of which it discussed last Thursday in its second quarter financials and conference call. Investors did not care for the update and sent the stock down 47 cents to $4.03. They were likely disappointed because cash flow of 54 U.S. cents a share was below analysts' predictions of 64 U.S. cents a share, this year's production guidance was slightly lowered to a range of 150,000 to 156,000 barrels a day (from a range of 150,000 to 160,000 barrels a day) and the June 30 long-term debt level remained stubbornly high at $5.29-billion (U.S.), the same as at March 31. This heavy debt load is one reason why the stock has fallen to around $4 now from last August's high of $23.14. It was also the main reason why Pacific Rubiales recently urged its shareholders to accept a $6.50-a-share takeover offer from one of its largest investors, Mexican conglomerate Alfa SAB. Pacific Rubiales said it would struggle to cope with its debt if the takeover did not go through. Yet after early proxy votes from shareholders indicated that the offer would be soundly rejected (in large part because of strident opposition from Venezuelan group O'Hara Administration, another major shareholder), Alfa cancelled the offer last month. Now Pacific Rubiales must forge ahead on its own.

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