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by Stockwatch Business Reporter

U.S. markets were closed for Memorial Day. West Texas Intermediate crude for July delivery added 27 cents to $49.60 in electronic trading on the New York Merc, while Brent for July added 43 cents to $49.75 (all figures in this para U.S.). Western Canadian Select traded at a discount of $11.80 to WTI ($37.80), up from a discount of $11.85. Natural gas for July lost 1.2 cents to $2.157. The TSX energy index lost a fraction to close at 187.95.

Alberta Montney gas producer Delphi Energy Corp. (DEE) plunged 21 cents to 93 cents on 5.79 million shares, after receiving some bad news from its bankers: The $132.5-million borrowing base of its senior credit facility has been reduced to $115-million and will likely be further reduced to $85-million at the end of June. Delphi estimates that it currently owes $105-million under the facility. The company also has another $14-million in subordinated debt, which was previously due at the end of June but has now been extended to Aug. 31. This means Delphi must quickly retire about $35-million in debt. With that in mind, it has filed a preliminary prospectus for a $40-million offering, consisting of 40,000 units that will each comprise a $1,000 note (due in 2021 and secured by second-priority liens) and 245 warrants (exercisable at $1.60 a share). Delphi says it must close the offering by June 30. Failure to close will constitute an event of default under the senior credit facility.

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