September 9, 2009 / 11:03 AM / in 8 years

UPDATE 1-Angle Energy to reduce drilling activity, production

* Says no plans to shut in production

* Sees FY09 production up 15 pct vs 23 pct forecast earlier

* Full-year capex seen at C$42 mln-C$44 mln

* Sees cash flow of C$32 mln-C$34 mln

Sept 9 (Reuters) - Canadian oil and gas explorer Angle Energy Inc NGL.TO said it will cut down on drilling activity and planned capital activity for the remainder of 2009 amid high levels of U.S. gas production and weak industrial demand.

Angle Energy said it now sees 2009 average production in the range of 7,500 to 7,600 barrels of oil equivalent per day (boe/d), a 15 percent growth over 2008.

The company had forecast a 23 percent increase, or 7,900 to 8,100 boe/d of average production.

Capital expenditures are expected to be C$42 million ($38.85 million) to C$44 million for 2009.

Cash flow, an indicator of a company’s ability to pay for new projects and drilling, is now expected in the range of C$32 million to C$34 million.

However, Angle Energy said it does not plan to shut in production, due to low operating costs and high NGL (natural gas liquids) content in its natural gas production.

Angle Energy shares, which have gained more than 16 percent in the past six months, closed Tuesday at C$4.50 on the Toronto Stock Exchange. ($1=1.081 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Maju Samuel)

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