May 16, 2011 / 5:58 PM / 6 years ago

UPDATE 1-N. Alberta fire forces Exall Energy to shut down plant

2 Min Read

* Shuts down Marten Mountain production

* Says evaluating impact of fire on operations

* Unclear when operations will restart

* Shares down 5 pct (Follows alerts)

May 16 (Reuters) - Oil and gas producer Exall Energy said it shut down its Marten Mountain project in Alberta as a wildfire raged through a nearby town, sending the company's shares down 5 percent.

Wildfires sweeping Canada's biggest energy-producing province destroyed a third of Slave Lake, a town of 10,000 people, and forced the complete closure of a newly repaired pipeline. [ID:nN16285443]

Exall's main customer, Enerchem International , declared force majeure citing the shutdown of its Slave Lake plant.

Exall's current average daily production was reduced to 124 barrels of oil equivalent per day (boe/d), while its capacity is 1,875 boe/d, the company said in a statement.

Exall, which is investigating the fire's impact on its plant, said it was unclear when operations could restart.

Earlier in the day, the company posted a three-fold rise in quarterly profit, at C$1.8 million, and a 28 percent increase in production at 1,045 boe/d. [ID:nASA025S3]

Shares of the company were down 5 percent in mid-day trade on Monday, at C$1.61 on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Don Sebastian)

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