April 29, 2010 / 3:22 PM / in 8 years

Monterey Exploration shares surge after strong reserve data

April 29 (Reuters) - Shares of Monterey Exploration Ltd MXL.TO rose as much as 16 percent on Thursday, a day after the oil and natural gas firm reported a 63 percent increase in reserves.

On Wednesday, Monterey said total reserves are now estimated at 142.5 billion cubic feet of gas equivalent (bcfge) on a proved plus probable basis.

Monterey, which expects to spend C$35 million in capital expenditures in 2010, said base production is expected to decline modestly and average 1,600 barrels of oil equivalent per day (boe/d) for 2010.

Calgary, Alberta-based Monterey also said it signed a deal with AltaGas Income Trust ALA_u.TO, under which AltaGas will fund the construction of Monterey’s Groundbirch natural gas plant, estimated to be C$28 million ($27.75 million).

Monterey said it acquired certain sections of land at Groundbirch in northeast British Columbia for C$19.2 million and agreed to sell a minor non-core property in central Alberta for C$10.0 million.

Shares of Monterey were up 34 Canadian cents, about 10 percent, at C$3.79 in morning trade on the Toronto Stock Exchange. They touched a high of C$3.99 earlier in the session. ($1=1.009 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)

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