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by Stockwatch Business Reporter
West Texas Intermediate crude for June delivery added 41 cents to $49.07 on the New York Merc, while Brent for July added 56 cents to $52.21 (all figures in this para U.S.). Western Canadian Select traded at a discount of $10.40 to WTI ($38.67), down from a discount of $9.75. Natural gas for June lost four cents to $3.19. The TSX energy index lost 4.19 points to close at 192.94.
B.C. Montney producer Painted Pony Petroleum Ltd. (PPY) lost 20 cents to $5.17 on 2.87 million shares. It has closed its all-share takeover of the private UGR Blair Creek and added two members to its board of directors. The controversial takeover received shareholder approval last week, although one-quarter of the shareholders voted against it, put off by the dilution involved in the deal and a related financing. Painted Pony now has just under 161 million shares outstanding, compared with 100 million before the arrangement was announced.
Just under 40 million of those shares are now controlled by ARC Financial and EnCap Investments. Each of them received 19.9 million shares as consideration for their interest in UGR, which they held through their interest in UGR's former owner, Unconventional Resources Canada. They each had two representatives on UGR's board. Now they will each have one representative on Painted Pony's board. ARC's nominee is Paul Beitel, who has been with ARC since 1998 and already represents ARC on the boards of Citadel Drilling, Huron Resources and Unconventional Gas Resources (whose initials gave rise to UGR). EnCap's nominee is George Voneiff. Mr. Voneiff does not hold any position at EnCap, but he was a director of UGR and is the CEO and co-founder of Unconventional Resources (the American sister of Unconventional Gas Resources). He and fellow co-founder Mike Gatens, who have worked together since the 1980s at various promotions, first took UGR into the Montney in 2008. Very few others were there at the time, but Painted Pony was, and the two companies quickly became neighbours and joint venturers.
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