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by Stockwatch Business Reporter
West Texas Intermediate crude for November delivery lost 77 cents to $50.01 on the New York Merc, while Brent for December lost 79 cents to $51.68 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.70 to WTI ($36.31), up from a discount of $13.75. Natural gas for November lost one cent to $3.21. The TSX energy index lost 1.55 points to close at 205.84.
Colombia-focused Parex Resources Inc. (PXT) lost 15 cents to $16.83 on 447,900 shares, despite a boosterish update from GeoPark Ltd., its joint venturer at the LLA-34 block. GeoPark talked up the block yesterday afternoon during its third quarter operational update. It said the three most recent wells in the block's Tigana/Jacana field, being the Jacana-3, -4 and -5 wells, were brought on production during the third quarter and are now producing 7,200 gross barrels of oil a day (which would be 3,960 barrels a day net to Parex, based on its 55-per-cent working interest. For context, Parex's total production was around 28,900 barrels a day in the second quarter). The Jacana-6 well is now being drilled, continued GeoPark, and testing of the Tigana-4 well is in progress. GeoPark pegged its total Colombian production at 15,678 barrels of oil equivalent a day in the third quarter, with the LLA-34 block contributing 94 per cent. These numbers indicate that Parex's share of production from the block in the third quarter was just over 18,000 barrels a day. This is a nice boost from 16,800 barrels a day during the second quarter, and drilling is not over yet; GeoPark says two or three more wells are to be drilled before year-end. One of the wells, based on previous information from Parex, could be the Chiricoca-1 exploration well, just north of Tigana. Unlike several companies that have preferred to hunker down at low-risk operations while waiting for the market to recover, Parex has devoted a sizable chunk of its spending to exploration this year, and last year as well. The decision seems to have paid off. Parex was one of just a handful of companies in the S&P/TSX Capped Energy Index to end 2015 higher than when it began, and so far this year it has more than doubled from a mid-January low of $7.73.
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