October 25, 2010 / 1:35 PM / in 7 years

UPDATE 1-Anderson Energy says wet weather slows Q3 drilling

* Weather causes some production shutdown in Cardium wells

* Says to defer drilling of 74 wells at Edmonton Sands

* Says has reduced exposure to natural gas markets

* To have predominantly light oil drilling program in 2011

Oct 25 (Reuters) - Canadian oil and gas company Anderson Energy Ltd AXL.TO said wetter-than-normal weather in Alberta slowed down drilling and shut down some production in the third quarter at its Cardium acreage, located in Alberta.

The company has also decided to defer drilling of 74 wells beyond 2010 at its Edmonton Sands in central Alberta due to weak natural gas prices.

Anderson Energy, which commenced drilling at its Cardium horizontal oil program in the first quarter, said it will drill a total of 21 gross Cardium horizontal wells in 2010.

The company, which earlier drew about 84 percent of its revenue from gas sales, also said it has reduced its exposure to natural gas markets.

It said revenue from oil and natural gas liquids is expected to account for over half of its total revenue in the fourth quarter and the company will have a predominantly light oil drilling program in 2011.

Shares of the company closed at C$1.03 Friday on the Toronto Stock Exchange. They have lost about 11 percent of their value year to date. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Aradhana Aravindan)

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