Energy Summary for Feb. 5, 2018

by Stockwatch Business Reporter

West Texas Intermediate crude for March delivery lost $1.30 to $64.15 on the New York Merc, while Brent for April lost 96 cents to $67.62 (all figures in this para U.S.). Western Canadian Select traded at a discount of $30.70 to WTI ($33.45), up from a discount of $27.70 and hitting a four-year high for the differential. Natural gas for March lost 10 cents to $2.75. The TSX energy index lost 4.99 points to 175.94.

More oil and gas stocks fell than rose. For instance, Cenovus Energy Inc. (CVE) lost 45 cents to $10.61 on 8.88 million shares, and Pine Cliff Energy Ltd. (PNE) lost 1.5 cents to 32 cents on 4.86 million shares. Meanwhile, Advantage Oil & Gas Ltd. (AAV) rallied 12 cents to $4.19 on 2.63 million shares, although it is still down from about $8.70 since July.

Robert Hodgkinson's DXI Energy Inc. (DXI) gained 1.5 cents to 11.5 cents on 124,200 shares. It finally announced last week that it has applied for a drilling permit for its Woodrush project in northeastern British Columbia's Peace River Arch. The company previously hoped to begin drilling Woodrush in the fourth quarter of 2017. It now expects to begin drilling in mid-February, and then depending on the well results, it may drill two or three more new wells. Mr. Hodgkinson, the company's chairman and chief executive officer, touts Woodrush as a soon-to-be producer of some of the "lowest-cost new oil available in B.C." He is hopeful that the first four new wells at Woodrush will produce a total of at least 1,500 barrels of oil equivalent a day.

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