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by Stockwatch Business Reporter

West Texas Intermediate crude for January delivery added 54 cents to $48.03 on the New York Merc, while Brent for January added three cents to $49.05 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.35 to WTI ($32.68), down from a discount of $15.25. Natural gas for December lost two cents to $2.95. The TSX energy index lost a fraction to close at 216.97.

Colombia-focused Gran Tierra Energy Inc. (GTE) lost 34 cents to $3.92 on 8.04 million shares, after arranging its second big equity financing this year: a $130-million (U.S.) bought deal of 43.3 million shares at $3 (U.S.). It says it will use the proceeds to repay debt under its credit facility. Investors seem taken aback, as the company was not seen as particularly burdened by debt. Just yesterday, TD Securities analyst Shahin Amini was marvelling at the "resilience of [Gran Tierra's] balance sheet," naming the stock "our top pick for its excellent management, near-term catalysts and strong finances." He noted that the company's expected debt-to-cash-flow ratio in 2017 is just 1.2 times at today's forecasts for oil prices, and would still be less than 3.0 times if those prices fell by $10 (U.S.) -- no small accomplishment. His comments echoed the remarks of Gran Tierra's chief financial officer, Ryan Ellson, who lauded the company's "strong balance sheet" and "strong financial position" during a Nov. 7 conference call about the third quarter financials. These showed working capital of $29-million (U.S.), short-term debt of $128-million (U.S.) and long-term debt of $180-million (U.S.) as of Sept. 30. More recent SEDAR filings show that the situation has changed. Last week, Gran Tierra's $185-million (U.S.) credit facility, which was $65-million (U.S.) drawn as of Sept. 30, was increased to $250-million (U.S.). Gran Tierra promptly drew down enough to repay the above-mentioned short-term debt. As a result, the credit facility is currently about $190-million (U.S.) drawn, leaving roughly $60-million (U.S.) available. The remainder of Gran Tierra's long-term debt, comprising $115-million (U.S.) in convertible notes that mature in 2021, is unchanged.

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