TSX spikes 220 points

Last Updated: Thursday, September 3, 2009 | 4:32 PM ET

The Toronto stock market rose sharply Thursday as economic indicators from the United States remained gloomy but earnings reports from Canadian companies came up rosy.

The benchmark S&P/TSX Composite Index closed up 220 points to 10,921, a gain of 2.1 per cent, led higher by commodity stocks and financials.

Montreal-based Laurentian Bank climbed 4.7 per cent to $37.93 after it announced better-than-expected earnings for the third quarter of 2008, ending July 31. Canadian Western Bank also beat analysts' expectations for its quarterly profit report and registered a 4.3 per cent gain to $18.36.

Shares in Nexen Inc. were ahead 95 cents to $21.90 on the TSX after the Calgary-based oil and gas company said it has made a "substantial" discovery of additional North Sea resources in the Golden Eagle area. Nexen estimated Golden Eagle contains the equivalent of between 150 million and 275 million barrels of oil.

Lukewarm U.S. figures

The rally in Toronto seemed to shrug off tepid economic and financial data from south of the border.

New U.S. jobless claims fell slightly last week while the number of people receiving unemployment benefits rose, the U.S. Labor Department said Thursday. The number of laid-off American workers applying for benefits dipped to 570,000 last week from an upwardly revised 574,000, but that was still a weaker performance than the drop to 560,000 claims that economists had expected.

Economists closely watch new jobless claims, which are considered a gauge of layoffs and an indication of companies' willingness to hire new workers.

The U.S. economy's service sector inched closer to growth in August, but still shrank for the 11th straight month in the face of weak consumer spending. The Institute for Supply Management said Thursday that its service index, which covers hospitals, retailers, financial services companies and more and tracks more than 80 per cent of the country's economic activity, came in at 48.4, up from 46.4 in July.

It was the best reading in 11 months and beat the estimates of a 48 from economists polled by Thomson Reuters. Still, any reading below 50 indicates the service sector is shrinking.

In New York the Dow, Nasdaq and S&P 500 were all higher. Profits were down from last year at Costco and the Gap, nevertheless better-than-expected results saw shares of the U.S. retailers advance 8.6 per cent and 7.6 per cent, respectively.

Market optimism will be tested on Friday when the U.S. government releases its non-farm payrolls report for August. Economists expect the report to show another 275,000 American job losses last month. With files from The Canadian Press and The Associated Press

Petrolifera raises $7.5-million through overallotment

Sep 2.2009

Petrolifera Petroleum Limited (PDP-T C$0.80) Gavin Wylie - 403-213-7333Financing Closes Craig Butchko - 403-213-7762

Proceeds from Petrolifera's $50M equity financing have been earmarked for debt repaymentand to fund its high-impact exploration through 2009 and into early 2010.

That said, drillingin Peru could be pushed further into 2010 unless a suitable farm-out can be established.Implications¦

Factoring in the newly issued shares (54M) and proceeds, our revised 2P NAV stands at$1.47/share (vs. $2.11/share).

Our estimates assume no proceeds from a potential farm-outin Peru that could recover a portion of the US$28M (100%) spent thus far.¦ For the balance of 2009, Petrolifera's $23M capital budget will include minimal drilling andwell conversions in Argentina, and potential spending associated with a La Pinta re-entry ifthe company can secure a snub-unit.¦

We maintain our 2-Sector Perform rating on Petrolifera and have lowered our one-yeartarget to $1.20 per share (vs. $1.75), which is based on our revised risked NAV of $1.20 pershare (vs. $1.77/share).Recommendation¦

The added cash should help to alleviate Petrolifera's near-term constraints and refocus itsattention to exploration activity in Colombia and Peru..

Thomas Weisel Partners Canada Inc.,

Cormark Securities Inc. and RBC Capital Markets,

Underwriters have a invested HUGE at .88 cents

What do they know that you don't?

They know this was 3.55 cents in June 2009

And this is a possibility again!

Time to get the money back?

I say yes I'm in at .77 cents which is better then .88!

Connacher Oil and Gas Ltd., a significant shareholder of the corporation, did not acquire any additional securities of Petrolifera pursuant to the overallotment option. Following closing of the overallotment option, Connacher will own 26,898,859 common shares and 6,778,000 warrants (approximately 22 per cent of the outstanding common shares) on a basic basis and will own 33,676,859 common shares (approximately 22 per cent of the outstanding common shares) on a fully diluted basis

2009-09-02 09:08 ET - News Release
Mr. Richard Gusella reports

UNDERWRITERS EXERCISE FULL OVER-ALLOTMENT OPTION
Petrolifera Petroleum Ltd. has received notice from Thomas Weisel Partners Canada Inc., Cormark Securities Inc. and RBC Capital Markets, on behalf of the underwriters of the corporation's equity financing announced in Stockwatch on Aug. 12, 2009, that the underwriters have exercised their overallotment option in full to purchase an additional 8,523,000 units at a price of 88 cents per unit for gross proceeds of $7,500,240.

Each unit consists of one common share in the capital of the corporation and one-half of one common share purchase warrant of the corporation. Each warrant entitles the holder thereof to purchase one common share at an exercise price of $1.20 per warrant share at any time up to 5 pm (Calgary time) on Aug. 28, 2011.

In the event that the 20-day volume weighted average price of the common shares on the Toronto Stock Exchange (or such other stock exchange or quotation system on which the common shares are listed and where a majority of the trading volume occurs), exceeds $2.50, the corporation may, within five business days after such an event, provide notice to the holders of warrants of early expiry and thereafter the warrants will expire on the date which is 30 days after the date of the notice to the warrantholders.

As a result of the exercise of the overallotment option, the total gross proceeds to Petrolifera of the offering will now be approximately $57.5-million. The closing of the overallotment option is expected to occur on or about Sept. 4, 2009. Upon closing of the overallotment option, the corporation will have 120,621,010 common shares and 32,671,500 warrants issued and outstanding on a basic basis and 156,631,677 common shares issued and outstanding on a fully diluted basis.

Connacher Oil and Gas Ltd., a significant shareholder of the corporation, did not acquire any additional securities of Petrolifera pursuant to the overallotment option. Following closing of the overallotment option, Connacher will own 26,898,859 common shares and 6,778,000 warrants (approximately 22 per cent of the outstanding common shares) on a basic basis and will own 33,676,859 common shares (approximately 22 per cent of the outstanding common shares) on a fully diluted basi