* Raises 2010 production outlook by 10 pct
* Shares up as much as 8 pct
By R. Manikandan
BANGALORE, Jan 29 (Reuters) - Canada’s Bellatrix Exploration Ltd BXE.TO said it raised its 2010 production outlook by 10 percent on increased drilling, sending its shares up as much as 8 percent.
The Calgary, Alberta-based oil and gas company said it expects 2010 average daily production to be about 8,500 barrels of oil equivalent per day (boe/d), with an exit rate of about 10,000 boe/d.
On Jan. 4, the company had expected average daily production of 7,700 boe/d and an exit rate of 8,400 boe/d.
“They are ramping up their drilling substantially, which should transform into greater production and greater cash flow,” Guy Gordon of Byron Securities Ltd said.
The company, on Jan. 12, raised its capital expenditure budget for 2010 by 88 percent to C$75 million, and said it expects to drill 44 gross wells and complete 40 gross wells, primarily in the Pembina and Ferrier areas of Alberta. [ID:nSGE60B0L7]
In 2009, Bellatrix successfully drilled 12 wells.
“If they continue on their successful drilling plan, each quarter should improve as we go on,” Gordon added.
Bellatrix shares, which have surged about 160 percent in the last three months, were up 23 Canadian cents at C$4.02 in morning trade Friday on the Toronto Stock Exchange. They had touched a 52-week high of C$4.10 earlier in the session. ($1=1.063 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)