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 August delivery lost $1.29 to $44.23 on the New York Merc, while Brent for September lost $1.40 to $46.71 (all figures in this para U.S.). Western Canadian Select traded at a discount of $9.90 to WTI ($34.33), unchanged. Natural gas for August lost three cents to $2.86. The TSX energy index lost 2.44 points to close at 164.76.

Clay Riddell's Paramount Resources Ltd. (POU) lost $1.29 to $17.45 on 2.85 million shares, after announcing two "strategic transactions" that together will roughly quintuple its production. One of the transactions involves the acquisition of another Riddell family promotion, Trilogy Energy Corp. (TET), up 11 cents to $4.65 on 5.27 million shares. Trilogy was spun out from Paramount in 2005. Both companies are led by Jim Riddell, Clay Riddell's son, while Clay Riddell sits on both boards as chairman.

The oil price crash has not been kind to either company. Paramount's stock, which was as high as $66 in mid- to late 2014, collapsed to a low of less than $3 in early 2016. It then enjoyed a remarkable rally up to nearly $22.50 in May, 2017, thanks in large part to a $2.1-billion asset sale to Seven Generations Energy Ltd. (VII: $20.67) in mid-2016. The sale wiped out Paramount's debt and narrowed its focus to a particular part of the Alberta Montney. Trilogy, on the other hand, has had less luck selling assets or reducing its debt. What it does have is production of over 20,000 barrels a day in the Alberta Montney and Duvernay. Buying Trilogy will roughly double Paramount's output (which was 16,000 barrels a day in the first quarter) and bring an end to Trilogy's struggles in the public market. Shareholders of Trilogy will receive one Paramount share for every 3.75 Trilogy shares held. Based on Paramount's closing price today of $17.45, the deal values Trilogy's stock at about $4.65, down sharply from its mid-2014 high of over $33.

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