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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery added five cents to $43.73 on the New York Merc, while Brent for November added 33 cents to $46.34 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.25 to WTI ($29.48), unchanged. Natural gas for October added two cents to $2.92. The TSX energy index added 1.66 points to close at 188.76.

Alberta Montney-focused Paramount Resources Ltd. (POU) added 33 cents to $15.25 on 793,900 shares. It has risen from less than $11 since announcing on July 6 that it would sell nearly three-quarters of its production to Seven Generations Energy Ltd. (VII: $31.14) for $2.1-billion, payable in cash, shares and the assumption of debt. The deal closed on Aug. 18. Yesterday brought the first presentation about Paramount since the closing of the deal, delivered by president and chief executive officer Jim Riddell at Peters & Co.'s Annual Energy Conference in Toronto. Mr. Riddell said the deal was a win for Paramount. Over the last decade or so, Paramount had plowed about $2.2-billion into the sold assets and related infrastructure, which together generated about $680-million in cash flow for the company. The main component of that related infrastructure, the Musreau complex, was sold for nearly $600-million to Pembina Pipeline earlier this year, and now Seven Generations has bought the remaining assets for $2.1-billion. By Mr. Riddell's math, Paramount's overall return was a pleasing $1.1-billion. The deal had other pleasant effects as well: For the first time in what feels like years, said Mr. Riddell, he no longer wakes up worrying about bank reviews. The company's net debt is now less than $300-million, down from nearly $2-billion at the start of the year. The reduction was evidently worth giving up a prized asset base. Mr. Riddell said the remaining assets, which are currently producing about 10,500 barrels of oil equivalent a day, form a "very interesting portfolio." The highlight of the portfolio is the Karr/Gold Creek Montney. Sales from this area came to about 4,700 barrels a day in July, and Mr. Riddell said Paramount is doubling its infrastructure capacity and has also started a 20- to 25-well program to boost production. By the end of the second quarter of 2017, he vowed ambitiously, Karr/Gold Creek production will have quintupled to 25,000 barrels a day.

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