November 15, 2010 / 1:15 PM / in 7 years

UPDATE 1-ProspEx posts wider Q3 loss; cuts FY output view

* Q3 loss/shr C$0.03 vs C$0.05 year ago

* Q3 rev up 59 pct at C$8 million

* Cuts FY production outlook

* Not to spend more capital this year

* Adopts shareholder rights plan with 20 pct trigger

Nov 15 (Reuters) - Canadian explorer ProspEx Resources Ltd PSX.TO posted a wider quarterly loss partly hurt by higher drilling and completion costs, and lowered its full-year production outlook in view of falling natural gas prices.

ProspEx, which is mostly focused on exploration of natural gas, also said it will not spend additional capital to maintain the pace of its capital spending program in the face of wet weather conditions and lower natural gas prices. Gas prices NGc1 have shed more than a third year to date, while oil CLc1 is up 5 percent.

The company also said it adopted a shareholder rights plan with a 20 percent trigger.

For the July-September quarter, ProspEx reported net loss C$1.6 million, or 3 Canadian cents a share, versus a loss of C$3.1 million, or 5 Canadian cents a share, a year ago.

Revenue rose 59 percent to C$8 million.

For the year, the company now sees production of 3,000 barrels of oil equivalent per day (boe/d), down from 3,100 to 3,300 boe/d expected earlier.However, it said it is on track to meet its 4,000 boe/d production outlook for late December.

Third-quarter production was 2,685 boe/d. Drilling and completion costs more than doubled to C$4.4 million.

ProspEx shares, which have gained about 46 percent in value in the past one year, closed at C$1.43 Friday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Gopakumar Warrier)

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