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 July delivery added 52 cents to $63.37 on the New York Merc, while Brent for August added 48 cents to $65.34 (all figures in this para U.S.). Western Canadian Select traded at a discount of $10.20 to WTI, up from a discount of $10.40. Natural gas for July lost four cents to $3.67. The TSX energy index added 1.18 points to close at 258.10.

International oil and gas producer Vermilion Energy Inc. (VET) added 41 cents to $9.55 on 2.63 million shares, as it got a little less international. Following through on prior indicators that it would exit the United States in order to narrow its focus on Western Canada and Europe, Vermilion has arranged to sell its remaining 5,500-barrel-a-day U.S. operations for $120-million cash. The deal also includes $10-million in contingent payments linked to benchmark U.S. oil prices.

This is the second non-core asset sale that Vermilion has arranged in as many weeks, coming on the heels of a $415-million deal for its 10,500-barrel-a-day Saskatchewan and Manitoba assets on May 23. Both sales are expected to close next quarter, and both are aimed at reducing the debt that Vermilion took on to buy Westbrick Energy (a gas producer in Alberta's Deep basin) for $1.07-billion in February. The takeover has been none too popular with investors: Vermilion's stock has lost 24 per cent of its value since the deal was announced in December, compared with a 1-per-cent gain eked out by the TSX energy index. Attempts to regain favour through non-core asset sales have largely fallen flat. The collective sale proceeds are $535-million (or $545-million if contingent payments come through), which is on the low end of analysts' predictions of $500-million to $750-million.

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