October 31, 2011 / 1:18 PM / 7 years ago

UPDATE 2-Progress Energy to focus on North Montney in 2012

* Sees capex of about $465 million in 2012

* Expects 2012 exit rate of 58,000-60,000 boe/d

* Sees avg 2012 production of 50,000-52,000 boe/d

* Shares down about 2 pct (Adds 2011 numbers, share movement)

Oct 31 (Reuters) - Natural gas producer Progress Energy Resources Corp plans to ramp up production rates by at least 16 percent in 2012 by focusing on its North Montney resource base in British Columbia and light oil play in Alberta’s Deep Basin.

The company is targeting an average production rate in 2012 of 50,000-52,000 barrels of oil equivalent per day (boe/d).

It expects to exit the year with production rates of about 58,000-60,000 boe/d, up from the 50,000 boe/d it is planning to achieve at the end of 2011.

Progress expects to spend about $465 million in 2012, up from the $400 million budgeted for this year.

The energy company said it will spend about $430 million to develop the North Montney resource base in British Columbia, including about $50 million earmarked for a joint venture program with Malaysia’s Petronas .

Progress will spend about $35 million on the Deep Basin and drill six to eight wells in the area’s Dunvegan light oil play.

Shares of the Calgary-based company were down 1.5 percent at C$14.48 in early trade on Monday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Maju Samuel)

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