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by Stockwatch Business Reporter

West Texas Intermediate crude for December delivery gained $1.41 to $56.55 on the New York Merc, while Brent for January gained $1.36 to $62.72 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.20 to WTI ($41.35), up from a discount of $14.40. Natural gas for December closed up four cents to $3.10. The TSX energy index closed up a fraction to 191.83.

Montney producer Kelt Exploration Ltd. (KEL) closed up 18 cents to $7.23 on 1.18 million shares. Since releasing its third quarter results and 2018 guidance last week, its stock has dipped to $6.95, then climbed back above $7. Two days ago, president and chief executive officer David Wilson was on BNN, hyping the company's plans for 2018. The interviewer made sure to mention that Mr. Wilson is best known for selling Celtic Exploration to ExxonMobil for $3-billion in 2012. Kelt was a spinoff from that deal.

More than half of Kelt's production is gas. Last month, because of low AECO gas prices (the benchmark in Alberta), Kelt was forced to shut in about 4,770 barrels of oil equivalent a day. Since Nov. 1, the company has brought a majority of the shut-in production back on stream; it had non-AECO contracts that came into effect on Nov. 1. Nonetheless, it has lowered its 2017 production guidance to 21,800 barrels a day from 22,500 barrels a day. In the nine months to Sept. 30, the company produced 21,141 barrels a day, slightly less than the full-year guidance, but it plans to ramp up production in the fourth quarter. It expects to end the year producing 27,500 barrels a day (increased from 26,500 barrels a day). Correspondingly, Kelt has also raised its 2017 capital budget to $226-million from $202-million. Its work in the fourth quarter will include drilling eight wells that will not begin production until 2018.

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