March 23, 2011 / 10:32 PM / 7 years ago

UPDATE 1-Emerge Oil & Gas Q4 loss widens on lower oil prices

* Q4 loss/shr C$0.13 vs C$0.08, last year

* Q4 sales volumes nearly tripled to 6,067 boe/d

* Rev more than doubles to C$33.7 mln (Follows alerts)

March 23 (Reuters) - Canada’s Emerge Oil & Gas Inc’s fourth-quarter sales volumes beat its own estimates, but the exploration company posted a wider loss, weighed down by lower realized oil prices and higher operating expenses.

The company, which currently operates in Saskatchewan and Alberta, also said its total proved plus probable reserves at end 2010, on a company interest basis, rose by a half to 13,632 million barrels of oil (mboe).

Emerge Oil posted net loss of C$11.9 million, or 13 Canadian cents a share, in October-December, up from loss of C$4.2 million, or 8 Canadian cents, a year ago.

Petroleum and natural gas revenue more than doubled to C$33.7 million. Average sales volumes nearly tripled to 6,067 barrels of oil equivalent (boe/d), above its own forecast of 5,970 boe/d.

The company, which is currently producing about 6,700 boe/d, said first quarter sales volumes have been impacted by the shutting in of key producing wells in Silverdale, Furness and Freemont.

Fourth-quarter operating expenses were up 6 percent to C$27.11 boe/d. Average realized oil price was C$61.57 per barrel, down from C$62.90 a barrel, last year.

In January, the company forecast 2011 production at 7,000-7,200 boe/d and set a capital budget of C$75 million for exploration and development activities.

Shares of the Calgary, Alberta-based company closed at C$3.40 on the Toronto Stock Exchange on Wednesday.

(Reporting by Arnika Thakur in Bangalore; Editing by Prem Udayabhanu)

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