July 14, 2011 / 11:30 AM / 6 years ago

UPDATE 1-Opti Canada says expects output to lag targets

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July 14 (Reuters) - Opti Canada , which filed for creditor protection on Wednesday, said it did not expect to reach gross production rates over 50,000 barrels per day (bbl/d) from its Long Lake oil sands project on weak oil sands output.

The company, which has a 35 percent stake in Nexen Inc’s Long Lake project, said a portion of its 90 well pairs will not meet production targets.

Opti expects well pads 12 and 13 to be functional by 2012, after which only the company hopes to meet production targets.

The Calgary, Alberta-based company, which has been under financial pressure due to persistently weak oil sands output, said on Tuesday it has hired a new financial adviser to assist in a search for strategic options, which include asset sales or finding a buyer for the company.

The company posted an average second-quarter bitumen production of 27,900 barrels per day (bbl/d) from its Long Lake oil sands project, up 12 percent from a year ago, mainly due to ramp up of new wells.

Production at the end of June was about 30,000 bbl/d.

The company said it did not expect to meet the previously forecast bitumen production range of 38,000-45,000 bbl/d for 2011.

Shares of the company closed at 11.5 Canadian cents on Wednesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Prem Udayabhanu)

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