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by Stockwatch Business Reporter

West Texas Intermediate crude for June delivery added 70 cents to $46.03 on the New York Merc, while Brent for June added 96 cents to $48.14 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.30 to WTI ($32.73), up from a discount of $13.50. Natural gas for June lost 7.5 cents to $2.078. The TSX energy index lost a fraction to close at 186.99.

Colombia-focused Parex Resources Inc. (PXT) added 34 cents to $12.49 on 896,800 shares, after entering two new farm-in agreements in Colombia's Middle Magdalena basin and announcing better-than-forecast first quarter production. The farm-in agreements are with state-owned Ecopetrol. Ecopetrol had announced last summer that it wanted to partially or fully sell its non-core assets. Parex took advantage in late September by agreeing to earn a 50-per-cent interest from Ecopetrol in the Aguas Blancas light oil field in the Middle Magdalena basin, which it had recently taken to calling its "next growth platform." (The original "growth platform," as it would presumably be deemed, is the Llanos basin, which provides all of Parex's production.) When Ecopetrol repeated its divestment desires earlier this year -- with a touch more urgency -- Parex was widely assumed to be a likely bidder. Last night, it confirmed the speculation by announcing farm-in agreements to acquire a 50-per-cent interest in two more Middle Magdalena blocks, called De Mares and Playon. It must spend $3-million (U.S.) on a well workover to earn the De Mare interest, and spend $7-million (U.S.) on an exploration well to earn the Playon interest. Parex plans to get started on both commitments this year, even though, in the case of De Mares, its deadline is not for another two years. Its eagerness may be explained by the blocks' neighbour. Both De Mares and Playon, as well as the above-mentioned Aguas Blancas, are near Ecopetrol and Occidental's La Cira-Infantas field, the first oil field discovered in Colombia. It is almost a century old and is still chugging along thanks to secondary recovery techniques. Parex is hoping for similar productivity from its farm-in fields. It is counting on the Middle Magdalena basin to help with its goal of eventually boosting production to over 50,000 barrels a day.

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