UPDATE 1-Anderson Energy Q3 loss narrows; cuts FY output view

Mon Nov 15, 2010 5:40pm EST

* Q3 loss/shr C$0.05 vs loss/shr C$0.06 yr-ago

* Q3 rev up 29 pct

* Sees weak natural gas prices in Q4

* Says to focus on oil production in 2011

Nov 15 (Reuters) - Oil and gas explorer Anderson Energy Ltd (AXL.TO) posted a narrower quarterly loss, but forecast weak natural gas prices for the fourth quarter and lowered its full-year production outlook.

The Calgary, Alberta-based company said it could set a 2011 capital program which could be focused almost wholly on oil, given the projected weakness in natural gas pricing.

Last month, Anderson had said wetter-than-normal weather slowed drilling and production at its Cardium acreage in Alberta.

The company now expects 2010 production to be at the lower end of its prior outlook of 7,700-8,200 barrels of oil equivalent per day. July-September net loss was C$9 million, or 5 Canadian cents a share, compared with a net loss of C$9.4 million, or 6 Canadian cents a share, a year ago. Oil and gas revenue rose 29 percent to C$18.9 million.

Analysts on average were expecting a loss of 6 cents a share on revenue of $23.8 million, according to Thomson Reuters I/B/E/S.

Shares of the company have lost 9 percent in value since it posted a second-quarter loss in August. They closed at C$1.07 on Monday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar and Arnika Thakur in Bangalore; Editing by Unnikrishnan Nair)

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