Energy Summary for Aug. 28, 2013
2013-08-28 20:12 ET - Market Summary
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by Stockwatch Business Reporter
West Texas Intermediate crude for October delivery added $1.04 to $110.05 on the New York Merc, while Brent for October added $2.25 to $116.61 (all figures in this para U.S.). Western Canadian Select traded at a discount of $23.80 to WTI ($86.25), unchanged. Natural gas for September added 3.3 cents to $3.56. The TSX energy index added 3.87 points to close at 261.52.
Neil Roszell's Raging River Exploration Inc. (RRX) added 17 cents to $5.50 on a heavier-than-usual 2.63 million shares. It did not have any news, but its close neighbour in the Saskatchewan Viking, Novus Energy Inc. (NVS) was halted this morning, almost certainly because of a pending takeover offer. Novus has been up for sale since December. Raging River has long been rumoured to be a possible buyer, but this offer, according to "market sources" cited in the Hong Kong Economic Times (and then Reuters), is from Hong Kong-listed Yanchang Petroleum International. (Reuters mentioned the Chinese article but could not confirm it.) Yanchang will apparently offer $500-million, which means two things. First, the offer would trigger a review under the Investment Canada Act; the threshold for 2013 is $344-million. Second, Yanchang seems to think Novus is worth at least $2 a share (after factoring in debt, options and so on), which is well above the company's 52-week high of $1.18. Neither Novus nor Yanchang has confirmed the offer. Trading in both companies' shares remains halted.