September 12, 2011 / 9:39 PM / in 6 years

UPDATE 1-Petro-Reef sees higher output rates in early 2012

* Sees about 1,138 bbls/day in early 2012

* Says new well in Alexander property confirms extended oil trend (Follows alerts)

Sept 12 (Reuters) - Oil and gas producer Petro-Reef Resources Inc expects daily production rates to increase in early 2012 as a new well on its Alberta asset comes online and regulators lift some restrictions on output.

The company expects to produce about 1,138 barrels of oil equivalent per day (boe/d). Petro-Reef's production in the quarter ended June 30 was an average of 589 boe/d.

Petro-Reef said a 48-hour test on a new well confirmed the presence of an extended oil trend at one of its assets near Edmonton, Alberta.

The new well flowed at 296 barrels of oil per day (bbls/day) during the test.

Petro-Reef will not have to pay a penalty on production from two other wells on the property, after the Energy Resources Conservation Board (ECRB) set a new production rate limit and asked the company to retire excess output from these wells.

Petro-Reef said it will put the wells back on-stream at a rate of 125 bbls/day in January.

Shares of the company closed at 25 Canadian cents on Monday on the Toronto Venture Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Viraj Nair)

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