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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery lost $1.01 to $46.76 on the New York Merc, while Brent for October lost 62 cents to $49.01 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.40 to WTI ($32.36), up from a discount of $14.65. Natural gas for September added three cents to $2.79. The TSX energy index lost 2.13 points to close at 198.83.

Colombia-focused Canacol Energy Ltd. (CNE) added 20 cents to $4.22 on 854,300 shares, after releasing the results of its first exploration well targeting the Nispero prospect on the Esperanza gas block. The Nispero-1 well hit 79 feet of net gas pay and tested at 28 million cubic feet of gas a day. Canacol plans to bring it on production shortly. Canacol is also expanding this year's drill program so that it can drill another prospect near Nispero, as well as additional wells at the Nelson field on the Esperanza block and the Clarinete field on the VIM-5 block. Originally, Canacol planned to drill three gas exploration wells this year: Oboe-1, which tested at 66 million cubic feet a day in the first quarter; Nispero-1, mentioned above; and Nelson-6, scheduled for drilling in October. Two weeks ago, Canacol expanded the program to include one more gas exploration well and a gas development well at unspecified locations. Now it has provided more details about these wells and added yet another one to the program. The exploration well is called Trombon-1 and will be drilled from the same platform as Nispero-1, targeting a prospect two kilometres away. Drilling will start next week. Shortly afterward, Canacol will spud the Clarinete-3 appraisal well, looking to build on the results of the Clarinete-1 and Clarinete-2ST wells, which together produced 30 million cubic feet a day in May and June. Scotia Capital analyst Gavin Wylie sees a "realistic possibility that production from the Clarinete field could move to 45 [million cubic feet a day] with the success of Clarinete-3," he wrote in a research note this morning. Back on the Esperanza block, Canacol plans to drill the Nelson-8 development well by year-end, along with the previously planned Nelson-6 exploration well. The Nelson field and the neighbouring Palmer field have total productive capacity of 75 million cubic feet a day currently, noted Mr. Wylie. He reckons that capacity could go up to 100 million with positive results from the next two Nelson wells.

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