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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery added 56 cents to $47.32 on the New York Merc, while Brent for October added 64 cents to $49.65 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.35 to WTI ($32.97), up from a discount of $14.40. Natural gas for September added five cents to $2.84. The TSX energy index lost a fraction to close at 198.58.

Colombia-focused Gran Tierra Energy Inc. (GTE) added one cent to $3.81 on 1.28 million shares, regaining some of the eight cents it lost yesterday after completing its $525-million (U.S.) takeover of PetroLatina Energy Ltd., well ahead of schedule. The original takeover announcement on July 1 had pegged the closing date at some time before Oct. 31, but Gran Tierra managed to gain regulatory approval faster than expected. Investors still seem to have their doubts about the deal. Gran Tierra's stock fell to about $4 from about $4.30 immediately after the takeover was proposed, and continued to drop to as low as $3.42 in the following weeks, although it has since rallied to $3.81. Part of the disapproval reflects the generous purchase price. PetroLatina is producing about 5,400 barrels a day, so the offer of $525-million (U.S.) works out to around $97,000 (U.S.) per barrel a day, more than four times what Gran Tierra paid when it bought a different company, Petroamerica Oil, earlier this year. Gran Tierra says not to worry. For one thing, PetroLatina adds a "new core platform area" in the Middle Magdalena basin, helping Gran Tierra expand beyond its existing core assets in the Putumayo basin. For another, PetroLatina's production can apparently be boosted quickly to 8,600 barrels a day in 2017 and 14,800 in 2018. This will provide cash flow to support a new program in the Putumayo basin, targeting the emerging N-sands play. For months Gran Tierra has been excitedly reminding investors that it will soon drill the first two N-sands wells on its PUT-7 block, called Cumplidor-1 and Alpha-1. Cumplidor-1 is apparently being drilled at this very moment, according to a new research note from Scotia Capital analyst Gavin Wylie. Mr. Wylie added that Gran Tierra will drill two to three N-sands exploration wells this year, targeting 40 million to 70 million barrels in total prospective resources. Next year's N-sands exploration program will include 15 wells targeting 39 million barrels, and the 2018 program will include 13 wells targeting 29 million barrels.

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