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by Stockwatch Business Reporter

West Texas Intermediate crude for August delivery lost three cents to $82.82 on the New York Merc, while Brent for September added three cents to $85.11 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.20 to WTI, up from a discount of $17.00. Natural gas for August added nine cents to $2.13. The TSX energy index added a fraction of a point to close at 286.40.

Tony Marino's Tenaz Energy Inc. (TNZ) rocketed up $2.07 to $5.74 on 1.75 million shares, thrilling investors with another round of Dutch dealmaking. Tenaz has agreed to buy NAM Offshore, a subsidiary of the Exxon- and Shell-owned NAM, for $246-million. The takeover will boost Tenaz's existing Dutch production by 11,000 barrels of oil equivalent a day (almost entirely gas) and turn it into the second-largest operator in the Dutch North Sea once the deal closes in mid-2025.

Mr. Marino, Tenaz's president and chief executive officer, dubbed himself "delighted." The price tag of $246-million is not even twice NAM's estimated free cash flow of $134-million -- with an emphasis on free -- and that figure is partially underpinned by hedges on nearly half of production from 2024 to 2026. The assets also boast "substantial organic investment opportunities," cheered Mr. Marino. He rattled off a list of 30 or more development drilling locations, "several years" worth of workover activity at existing wells, and more than 80 exploration leads.

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