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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery lost $1.45 to $44.81 on the New York Merc, while Brent for October lost $1.28 to $47.04 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.30 to WTI ($30.51), up from a discount of $14.35. Natural gas for October was unchanged at $2.88. The TSX energy index lost 3.41 points to close at 195.70.

Colombia-focused Canacol Energy Ltd. (CNE) lost 19 cents to $4.16 on 723,600 shares, despite a boosterish Bloomberg interview given yesterday by president and chief executive officer Charle Gamba, in the obligingly headlined, "Top Colombia Stock Canacol Energy Nears New Gas Sale Contracts." Mr. Gamba said Canacol has negotiated contracts to sell an additional 100 million cubic feet a day of gas production (equal to roughly 17,500 barrels of oil equivalent a day). These would be on top of the existing contracts that are forecast to cover 75 million cubic feet a day this year at an expected price of $5.60 (U.S.) per thousand cubic feet, including 90 million cubic feet a day starting from April 21, the day on which a major pipeline expansion was completed. Canacol has stated more than once that it wants to sign contracts for another 100 million cubic feet, so Mr. Gamba's interview contained few surprises on that front, although he did specify that the new contracts have prices ranging from $4.50 (U.S.) to $6.50 (U.S.) per million British thermal units. (One million British thermal units and 1,000 cubic feet are roughly equal.) Mr. Gamba said the new contracts are expected to be signed by year-end. With those in hand, Canacol expects to more than double its gas production to 190 million cubic feet a day in the second half of 2017. This will require the drilling of six to seven development wells, and will also require new pipeline infrastructure to be built. Mr. Gamba said Canacol will decide on the builder next month. Contenders include Promigas (which did the pipeline project mentioned above) and a group of unidentified international companies. Canacol previously noted that it was in discussions with pipeline builders, but it pegged the in-service date of the pipeline as late 2018; evidently Mr. Gamba wants it done much faster. He has also raised his ambitions for Canacol when it comes to this year's production. The official guidance calls for full-year production (including oil) of 16,000 to 17,000 barrels of oil equivalent a day, but Mr. Gamba says Canacol will actually produce 17,000 to 18,000.

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