* Q1 earnings/unit C$0.32 vs C$0.60 last year
* Revenue up 2 pct
* Production up 9 pct
* Ups capital program to C$225 mln-C$250 mln
May 12 (Reuters) - Canada's oil and gas explorer Peyto Energy Trust PEY_u.TO posted a 42 percent drop in quarterly profit, hit by a decline in natural gas prices.
For the first quarter, the trust posted a net income of C$36.9 million, or 32 Canadian cents a unit, compared with C$63.6 million, or 60 Canadian cents per unit, a year ago.
Revenue rose 2 percent to C$80 million.
Production was up 9 percent at 124 millions of cubic feet equivalent per day.
It also raised its capital program for 2010 to a range of C$225 million to C$250 million. It had earlier forecast C$175 million to C$200 million
Units of the Calgary, Alberta-based company closed at C$13.45 Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Aradhana Aravindan)