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by Stockwatch Business Reporter
West Texas Intermediate crude for August delivery lost $2.29 to $45.14 on the New York Merc, while Brent for September lost $2.40 to $46.40 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.25 to WTI ($30.89), down from a discount of $13.90. Natural gas for August lost 0.9 cent to $2.777. The TSX energy index lost 2.88 points to close at 187.75.
Clay Riddell's Paramount Resources Ltd. (POU) added 93 cents to $11.87 on 8.24 million shares, after agreeing to sell a chunk of its Alberta Montney assets for $1.9-billion to Seven Generations Energy Ltd. (VII: $27.02), up $1.79 to $26.89 on 8.3 million shares. The assets are in the Musreau/Kakwa area, right beside Seven Generations' Kakwa River project. They produced about 30,000 barrels of oil equivalent a day in the second quarter. In exchange for the assets, Seven Generations must pay $475-million cash, assume $450-million (U.S.) of Paramount's debt and issue Paramount 33.5 million shares, which will work out to an approximately 10-per-cent shareholding. Paramount will then be Seven Generations' second-largest shareholder, after the Canada Pension Plan Investment Board, which owns 45.8 million shares. The 10-per-cent figure assumes that Seven Generations closes a planned $650-million bought deal to help finance the acquisition. It should have no problem doing so; David Taylor of Taylor Asset Management told BNN this morning that the financing is five times oversubscribed.
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