October 19, 2011 / 12:47 PM / 6 years ago

UPDATE 2-Crocotta Energy ups 2011 exit output, capex view

* Expects to exit the year with a production rate of 5,500-6,100 boepd

* Raises full-year capital expenditure to $79 million from $51 million

* Current output estimated to be over 5,000 boepd (Adds share movement)

Oct 19 (Reuters) - Canada’s Crocotta Energy Inc on Wednesday raised its full-year exit production forecast and boosted capital expenditure, sending the company’s shares up as much as 10 percent in morning trade.

The juinior oil and natural gas explorer said it now expects to exit the year with a production rate of 5,500-6,100 barrels of oil equivalent per day (boepd), up from its previous forecast of 4,500 boepd.

Current production is estimated to be over 5,000 boepd with an additional 1,000 boepd under restriction due to infrastructure constraints, the company said in a statement.

Crocotta , which focuses primarily on west-central Alberta and northeast British Columbia, also raised its full-year capital expenditure to $79 million from $51 million.

The company said it will construct new pipelines to accommodate the additional production and expects to finish building facilities by mid-December.

On Wednesday, research firm Paradigm Capital raised its price target on the stock to $3.75 from $3.50, citing confidence in the company’s operations in the Bluesky oil and natural gas formation in Alberta.

Shares of the Calgary, Alberta-based company were trading up about 9 percent at C$2.87 on the Toronto Stock Exchange. They have gained about 8 percent since Crocotta posted a second-quarter profit in August.

The stock was one of the top traded on the exchange with over 260,000 shares changing hands by 1015 ET. (Reporting by Amruta Sabnis in Bangalore; Editing by Sriraj Kalluvila and Supriya Kurane)

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