UPDATE 1-Anderson Energy raises FY capex budget

Tue Jun 1, 2010 10:24am EDT

* Raises FY capex budget by 28 pct to C$111 mln

* Reaffirms FY production outlook of 8,000 boed-8,500 boed

* Raises its credit facility by C$15 mln to C$115 mln

June 1 (Reuters) - Canadian oil and gas company Anderson Energy Ltd (AXL.TO) said it raised its full-year capital expenditure budget by 28 percent to drill additional wells in its Cardium acreage, located in Alberta.

The company raised its capital expenditure budget, before divestments, to C$111 million from C$87 million.

It also reaffirmed its full-year production outlook of 8,000 barrels of oil equivalent a day (boed) to 8,500 boed.

The percentage of oil and natural gas liquids in its annual production is expected to increase to over 20 percent on an annual basis and to about 30 percent by the fourth quarter, it said in a statement.

The company, which resumed drilling on its Cardium horizontal oil program on Friday, said it will drill about 18 gross Cardium horizontal oil wells in 2010, of which 3 gross have been already drilled.

The company also said it had entered into an agreement, with its syndicate of banks, to increase its total available credit facilities to C$115 million from C$100 million.

Shares of the company were trading up one Canadian cent at C$1.07 Tuesday morning on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Aradhana Aravindan)

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