May 26, 2011 / 6:58 PM / 7 years ago

UPDATE 1-Exall Energy starts partial output from fire-hit Alberta plant

* Says producing 348 boe/d from Marten Mountain project

* Full ops to remain curtailed until other cos start ops (Follows alerts)

May 26 (Reuters) - Exall Energy started partial production from its Marten Mountain project in Alberta, after a wildfire in a nearby town forced the oil and gas producer to shut down operations earlier this month.

More than 150,000 barrels a day of heavy oil production near Slave Lake, Alberta, has been shut down for about a week, most of it because wildfires caused a power outage that idled a segment of a regional pipeline that carries the crude. [ID:nN25173454].

The Marten Mountain project will now produce 348 barrels of oil equivalent per day (boe/d), which is just about a fifth of the projects capability of 1,773 boe/d.

It is the company’s main project, contributing more that 94 percent of its current production.

The company’s average daily production has increased to 450 boe/d from 124 boe/d after it was forced to shut down on May 16.

The company said full production will remain curtailed till other third-party operations in the Slave Lake area are re-established. It will have all necessary approvals to start drilling operations in the project in early June.

Shares of the company were trading down 3 percent at C$1.60 on Thursday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)

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