August 9, 2011 / 1:02 PM / 7 years ago

UPDATE 1-Exall Energy's Q2 profit up despite forest fires, flooding

* Expects to exit 2011 with production rate of 2,500 boe/d (Follows alerts)

Aug 9 (Reuters) - Exall Energy Corp’s quarterly profit rose 55 percent, despite production at its Alberta assets being shut-in because of the Slave Lake, Alberta forest fires earlier this year.

Net income in the March quarter was $1.4 million, or 2 cents per share, compared with $935,551, or 2 cents per share, a year ago.

Oil and gas sales rose 46 percent to $7.4 million.

Exall’s second-quarter production rose 7 percent to average 896 barrels of oil equivalent per day (boe/d). Exall attributed the rise in production to drilling success at its Marten Mountain, Mitsue area property in Alberta.

The company said current production was at 1,420 boe/d, and it expects to exit 2011 with an estimated production rate of 2,500 boe/d.

Exall also said it had fallen behind on its drilling program as heavy rains caused flooding near Slave Lake in Alberta, affecting normal operations.

In May, the company started partial production from its Marten Mountain project in Alberta, after forest fires in the area were brought under control.

Shares of the company closed at C$1.50 on Monday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Saumyadeb Chakrabarty)

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