UPDATE 1-Long Run to buy nat gas assets from Crew Energy for C$225 mln

Wed Apr 9, 2014 6:14pm EDT
 
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* Crew raises exploration & development spending to C$285 mln

* Long Run raises avg 2014 output forecast to 32,150 boe/d (Adds production outlook, shares)

April 9 (Reuters) - Canadian oil and gas producer Long Run Exploration Ltd entered into a deal to buy natural gas assets in Alberta from bigger rival Crew Energy Inc for about C$225 million ($206 million).

Long Run did not identify the seller in its statement, but Crew Energy said separately that it was selling assets in the Deep Basin of Alberta to accelerate development of its assets in Montney shale field in British Columbia.

The deal includes about 400 barrels per day of heavy oil production, Crew Energy said.

Crew Energy, which bought liquids-rich natural gas assets in Montney for about C$105 million last month, said it would increase spending on exploration and development by C$39 million to C$285 million in 2014.

The company expects to produce an average of 25,500-26,500 barrels of oil equivalent per day (boe/d) in 2014 after the deal, lower than its previous production forecast of 29,500-30,500 boe/d.

Long Run raised its average production forecast for the year to 32,150 boe/d from 26,300 boe/d. The acquisition will add about 7,000 boe/d to the company's output.

Long Run also raised its monthly dividend by 5 percent to 35 Canadian cents per share.   Continued...