10:35:37 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Energy Summary for Feb. 9, 2016

2016-02-09 19:57 ET - Market Summary

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 March delivery lost $1.75 to $27.94 on the New York Merc, while Brent for April lost $2.56 to $30.32 (all figures in this para U.S.). Two bearish reports hit the market within hours of each other, one from the International Energy Agency (which warned that the global oil glut will only get worse this year) and one from the U.S. Energy Information Administration (which lowered its oil demand growth forecast for the next two years). Western Canadian Select traded at a discount of $13.75 to WTI ($14.19), up from a discount of $14.20. Natural gas for March lost 4.2 cents to $2.098 The TSX energy index lost 7.16 points to close at 144.41.

Colombia-focused Parex Resources Ltd. (PXT) lost 16 cents to $8.80 on 833,200 shares, after releasing a strong but not surprising reserve report and scaling back this year's budget and drill program. The press release focused mainly on the reserve report. Parex's proven plus probable (2P) reserves were 81.8 million barrels of oil equivalent as of Dec. 31, 2015, in line with analysts' predictions. A year earlier, 2P reserves were just 68.4 million barrels. Investors knew an increase was coming because of the various exploration and appraisal successes that Parex enjoyed in 2015, mainly at the LLA-34 and LLA-26 blocks in Colombia's Llanos basin. This basin accounts for most of Parex's reserves and its 29,000-barrel-a-day production. Parex also has an earlier-stage presence in the Middle Magdalena basin, which (despite being the "next growth platform," as Parex has called it) barely got a mention in the press release. It shows up in more detail in Parex's new on-line corporate presentation. This says that the Aguas Blancas field in the Middle Magdalena basin will be one of three priorities over the next two years, with the other two (the LLA-34 and Capachos blocks) being in the Llanos basin. What exactly will be done with them this year is up in the air. Parex had said in November that it would spend $165-million (U.S.) and produce 30,200 barrels a day in 2016, based on $50 (U.S.) Brent and using cash flow only. It added that $80-million (U.S.) would go toward exploration. Now it has scaled back those plans. It reckons that its cash flow in 2016 will be $40-million (U.S.) to $80-million (U.S.) (based on $30 (U.S.) to $40 (U.S.) Brent) and that the majority of exploration drilling, except for two to four wells, will be deferred until 2017 or later. It did not provide a new production target. Scotia Capital analyst Gavin Wylie (who met with Parex's new president, David Taylor, last month) wrote this morning that he expects Parex to spend $75-million (U.S.) in 2016 to produce 29,000 barrels a day.

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

© 2024 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.


Comments for this item are closed