July 6, 2010 / 2:42 PM / 8 years ago

UPDATE 1-Midway Energy ups 2010 capex budget, exit output rate

* Ups 2010 capital expenditure budget by C$22 mln

* Sees Q4 funds from operations between C$9 and C$10 mln

* Ups target exit production rate by about 33 pct

July 6 (Reuters) - Canadian oil explorer Midway Energy Ltd MEL.TO said it raised its 2010 capital expenditure budget by C$22 million to expand its Cardium drilling program and to fund necessary facilities in the Garrington area of Alberta.

The Garrington facilities will also be funded with the net proceeds of a recently closed bought deal equity financing, the company said.

The company’s drilling program will be increased to 17 net Cardium “A” wells from 12 at present and is expected to improve its year-end 2010 proved reserves.

As a part of the increased capital spending, Midway will spend an additional C$3 million to upgrade its existing facilities by early fall.

The company raised its target exit production rate to 2,900 to 3,000 barrels of oil per day, an increase of about 33 percent to the company’s prior outlook and said it expects its fourth-quarter funds from operations to be between C$9 and C$10 million.

Shares of the Calgary, Alberta-based company were up 4 Canadian cents at C$3.00 Tuesday morning on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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