July 4 (Reuters) - Canada’s Advantage Oil & Gas Ltd set its capital budget for the year at C$216 million ($225.3 million), mainly to ramp up production at its Montney natural gas play in Glacier, Alberta.
The company expects production to grow 24 percent and exit the first half of 2012 with 29,000 barrels of oil equivalent per day.
Advantage Oil will invest C$155 million to increase throughput at Glacier, and C$45 million to evaluate the potential reserves in the middle and lower Montney formations.
The Montney area falls under the Western Canadian Sedimentary Basin, which covers Alberta and parts of Manitoba, Saskatchewan and British Columbia and is one of the world’s largest reserves of petroleum and natural gas.
Shares of Calgary-based Advantage Oil closed at C$7.60 on Monday on the Toronto Stock Exchange.
$1 = 0.959 Canadian Dollars Reporting by Gowri Jayakumar in Bangalore; Editing by Maju Samuel