Nov 14 (Reuters) - Spartan Oil Corp raised its 2011 exit production forecast and capital budget program, sending the Canadian oil and gas explorer’s shares up 7 percent.
The company now sees year-end exit production at 1,500 barrels of oil equivalent per day (boepd), up from its previous forecast of 1,050 boepd.
The company raised its 2011 capital expenditure to C$41.3 million from C$33.6 million to drill more wells in Alberta and Saskatchewan.
The budget program will be funded through cash flow and the company’s credit facility, which was recently increased to C$25 million, Spartan said in a statement.
The company started operations on June 1, 2011, after the completion of a plan of arrangement among Spartan Exploration Ltd, Penn West Petroleum Ltd and Spartan Oil.
Shares of the company were trading up at C$3.00 on Monday morning on the Toronto Stock Exchange. (Reporting by Arnav Das Sharma in Bangalore; Editing by Sriraj Kalluvila)