April 11, 2011 / 12:48 PM / in 7 years

UPDATE 2-Celtic cuts 2011 production outlook

* Says 2011 production to avg 20,000-20,400 boe/d

* Raises 2011 capex to C$260.0 million from C$180.0 million

* Sees 2011 FFO of about C$160.0 million

* Shares fall 1 pct (Adds more outlook, share movement)

April 11 (Reuters) - Canada’s Celtic Exploration Ltd cut its 2011 production forecast and said first-quarter production was hurt by plant outages at two of its facilities in Alberta.

The oil and natural gas explorer, whose operations are focused in Western Canada, said first-quarter production has been hit by about 1,000 barrels of oil equivalent per day (boe/d) due to plant outages at the Kaybob KA and K3 facilities.

The Kaybob plant was shut down due to a mechanical failure for nearly a month.

Celtic expects 2011 production to average between 20,000 and 20,400 barrels of oil equivalent per day (boe/d). It had earlier forecast 20,400-20,800 boe/d.

It expects to exit 2011 with production of about 24,500 boe/d, up 41 percent from the fourth quarter.

The company’s average commodity price assumptions for 2011 is $90.00 per barrel for West Texas Intermediate (WTI) oil, which compares with average 2010 prices of $79.43 per barrel for WTI oil.

Celtic, which has sold some of its non-core assets since March last year, raised its 2011 capital expenditure to C$260.0 million ($272 million) from its prior forecast of C$180.0 million. It expects to spend C$207 million on drilling and well completions.

For 2011, funds from operations are expected to be about C$160.0 million, or C$1.63 per share, compared with the company’s previous forecast of C$159.0 million, or C$1.70 per share.

Celtic shares fell 21 Canadian cents to C$20.97 on Monday morning on the Toronto Stock Exchange.

$1 = 0.956 Canadian Dollars Reporting by Bhaswati Mukhopadhyay; Editing by Maju Samuel

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