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 January delivery added 45 cents to $51.41 on the New York Merc, while Brent for February added 29 cents to $54.28 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.40 to WTI ($36.01), up from a discount of $15.45. Natural gas for January was unchanged at $3.72. The TSX energy index added 1.38 points to close at 222.03.

Saskatchewan-focused Spartan Energy Corp. (SPE) added three cents to $3.28 on 8.56 million shares, after closing its $700-million asset acquisition from ARC Resources Ltd. (ARX: $23.56) and becoming one of the largest light oil producers in the province. The acquired assets are producing 7,500 barrels of oil equivalent a day, taking Spartan's total production past 20,000 barrels a day. By comparison, this time last year, its production was around 9,000 barrels a day. It has spent over $870-million this year picking up assets. The deal with ARC was the largest, leading Spartan to raise $542.6-million by issuing 180.8 million shares at $3. Participants are already up almost 10 per cent. They seem eager to see Spartan get to work on its new assets, which have been neglected lately by the Montney-focused ARC. Spartan says on its website that the "east package" acquired from ARC, consisting of 2,100 barrels a day in and around Spartan's existing assets in southeast Saskatchewan, has not seen any wells in the last two years. The "west package," which borders the east package and gives Spartan access to a new play, the Ratcliffe (where Crescent Point Energy Corp. (CPG: $18.24) is the busiest operator), saw no wells this year and just two last year. Its current production is 3,100 barrels a day. The rest of the production from the acquired assets comes from non-operated minority interests in EOR (enhanced oil recovery) projects. This morning, Spartan laid out the near-term plans for its assets, new and old. It has set a 2017 budget of $145-million, which it says is enough to support the drilling of 125.8 net development wells, including 10 Ratcliffe wells. It expects full-year average production of 21,080 barrels a day.

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