Message #2 From:
NewsBot Date: September 13, 2006 12:33:00 PM
PTCH News AXcess News: Energy Stocks Mixed on Lower Commodity Prices
NEW YORK--(BUSINESS WIRE)--Sept. 13, 2006--As energy prices have declined in the last two weeks many consumers are benefiting from cheaper gasoline and home heating fuels, but most of the action is on Wall Street where energy stocks of oil and gas exploration and development companies are showing mixed results.
The Composite for oil and gas drilling and exploration rose 2.7 percent Wednesday to 432.8, with both major and juniors showing mixed results across the board as investors looked to find bargains in the market. The Amex Natural Gas Index rose 1.8% to 417.7.
After lagging for weeks, the EIA report showed inventory levels of crude oil were down 2.6 million barrels this week. The news of shrinking inventories rallied investors who began chasing oil and gas stocks.
Chevron Corp. traded up 1.6 percent, while BP Plc matched Chevron's gain. Chevron recently disclosed a major discovery in the Gulf of Mexico while BP says its Alaskan pipeline should be back in production soon. Both majors faced unusual circumstances that affected their markets dramatically. But many other companies were being affected by energy prices that may seem like they're underperforming when in fact they've been caught up in supply concerns rather than fundamentals.
Calgary, Alberta-based Canadian Superior Energy Inc. recently announced its offer to acquire Canada Southern Petroleum Ltd. has expired. Canada Southern shareholders decided to hold out for more, despite a higher share price that most of the Alberta-area oil and gas exploration companies have not been experiencing in the last two months.
Amongst the Canadian juniors, Patch International Inc. (OTCBB: PTCH) has been very quiet about its exploration activities after a rush of exuberance lifted the Alberta oil sands exploration company's shares to an all-time high of $4 in March. Patch has been looking at bidding for more oil sands leases but the process is slow, the company said and without wanting to alert potential competing bidders, Patch has not released information relating to its acquisition strategy.
The company had bought lucrative oil sands lease tracks in some of the now prime areas in Alberta's oil sands region before majors began snapping up neighboring properties and since then, Patch has brought in some top talent several months ago to help in its exploration plans. Delays in news have impacted the junior oil and gas exploration company's market price but any more lucrative lease plays could change that culture quickly.
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