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 June delivery lost 70 cents to $81.93 on the New York Merc, while Brent for June lost 54 cents to $87.86 (all figures in this para U.S.). Western Canadian Select traded at a discount of $12.50 to WTI, down from a discount of $12.00. Natural gas for June lost four cents to $1.99. The TSX energy index tumbled 9.31 points to close at 293.98.

Earnings season rolled along in the oil patch. Infrastructure and royalty company Topaz Energy Corp. (TPZ) lost 31 cents to $22.79 on 585,800 shares, after releasing its results for the first quarter. (While not a direct oil and gas producer, Topaz collects royalties from producers across Western Canada, providing useful indicators of industry activity.) Royalty production of 19,200 barrels of oil equivalent a day and cash flow of 47 cents a share were both in line with analysts' predictions.

The number of gross wells drilled on Topaz's acreage slipped to 145 in the first quarter from 164 in the same period last year. This largely reflects a decrease in gas drilling activity amid a sharp tumble in gas prices (about 70 per cent of Topaz's royalty production is gas). One noteworthy non-gas play helped cushion the fall. In Alberta's Clearwater heavy oil play, the number of wells drilled on Topaz's acreage rose year over year to 53 from 49. Topaz marvelled that over the past three years, its heavy oil royalty production has climbed to nearly 3,000 barrels a day from barely 50 barrels a day, predominantly thanks to the Clearwater.

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