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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery added $1.39 to $75.91 on the New York Merc, while Brent for October added $1.29 to $79.94 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.10 to WTI, down from a discount of $11.40. Natural gas for October added four cents to $2.13. The TSX energy index added 2.55 points to close at 287.50.

One of today's worst performers was Wayne Foo's Colombia-focused Parex Resources Ltd. (PXT), which plummeted to an intraday low of $11.33 before clawing back to settle at $13.18, down $4.08, on 11.2 million shares. Investors scattered after Parex reduced its guidance to reflect a "materially" disappointing asset. Not even a heavy emphasis on an intact dividend -- for a newly lofty yield of 11.7 per cent -- kept them from fleeing for the exits.

The asset that bore the brunt of the blame was the Arauca block. Only four months ago, Parex brought the first well on this block on production, marvelling that its 4,000-barrel-a-day flow rate placed it "among the top oil-producing wells in Colombia." Even better, this output was softening the blow of various operational woes at other blocks earlier in the year. Parex thus stuck confidently to its full-year guidance of 54,000 to 60,000 barrels a day. As quickly as Arauca's star burned, however, it now appears to be flaming out. Parex lamented today that the block is experiencing "rapid productivity decline" to around one-10th of previously expected levels. In turn, the above-mentioned cushion is thinning, thinning, gone.

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