This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery added $1.94 to $43.41 on the New York Merc, while Brent for October added $2.11 to $45.96 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.40 to WTI ($29.01), up from a discount of $14.70. Natural gas for September lost two cents to $2.54. The TSX energy index added 2.31 points to close at 197.84.

Alberta Montney/Doig producer Birchcliff Energy Ltd. (BIR) lost 25 cents to $8.65 on 4.86 million shares, after releasing the results of a remarkable second quarter, which was dominated by the June 21 announcement of a $625-million acquisition of Gordondale Montney assets from EnCana Corp. (ECA: $11.88). The acquisition closed two weeks ago and boosted Birchcliff's total production to around 65,000 barrels of oil equivalent a day. Of course, the acquired assets did not affect the second quarter, so Birchcliff's production during this time was 39,513 barrels a day, in line with analysts' predictions. Cash flow was also in line with predictions at nine cents a share. Operating costs were $3.45 a barrel, a "record low," as Birchcliff pointed out no fewer than eight times in the press release. It can be forgiven its enthusiasm, seeing as it may have to wait a while before it can use the phrase again. Operating costs are expected to head up as a result of the Gordondale acquisition. They have stayed low in the past because Birchcliff has been able to process most of its production through its wholly owned Pouce Coupe South (PCS) gas plant, avoiding third party processing fees. The new Gordondale assets, on the other hand, have their production processed mainly at a plant owned by AltaGas. Birchcliff is not bothered. The assets are "transformational," it says, and it is now ready to get to work on them. It plans to drill six Gordondale wells during the second half of the year. It is also expanding its drill program at its other assets, where it previously expected to drill 13 wells this year. All of those have now been drilled, with nine in the first quarter and four in the second. Now Birchcliff says it will drill another four by year-end.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS