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by Stockwatch Business Reporter

West Texas Intermediate crude for December delivery shot up $2.02 to $56.20 on the New York Merc, while Brent for December added $1.46 to $61.69 (all figures in this para U.S.). Western Canadian Select traded at a discount of $20.00 to WTI, unchanged. Natural gas for December added eight cents to $2.71. The TSX energy index added 3.83 points to close at 127.09.

The bell tolls for thee, Pengrowth Energy Corp. (PGF). Once one of Canada's stalwart energy trusts, trading above $26 in 2006, the stock today plunged 15 cents to five cents as Pengrowth succumbed to debt and sold itself for pennies. The deal comes about seven months after Pengrowth announced that it would undertake a "strategic review" to find someone to buy it or help it restructure. It was trading above 70 cents at the time and was optimistic that a suitor would take an interest in its Lloydminster thermal oil project and its Groundbirch Montney gas project, each with a reserve life of over 50 years. The appeal of nearly 450 million barrels in proved and probable reserves was offset, however, by a balance sheet burdened by over $700-million in debt. Now one company has shown itself willing to take on the risk. Cona Resources, a portfolio company of Waterous Energy Fund, has agreed to buy Pengrowth in a deal worth $740-million. The vast majority of that price tag represents assumed debt. On the equity side, investors will receive a mere $28-million, or five cents a share.

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