December 7, 2010 / 2:56 PM / 7 years ago

UPDATE 1-Opti Canada sees higher capex for 2011

* To use most of budgeted expenditure on Long Lake project

* Nov bitumen prodn at Long Lake falls 10 pct sequentially

* Shrs down 4 pct

Dec 7 (Reuters) - Opti Canada Inc OPC.TO forecast a 26 percent increase in 2011 capital budget, but said funding could be hurt in part by lower commodity prices.

The company, which is focused on developing major oil sands projects, also reported a 10 percent sequential fall in November bitumen production at its 35 percent-owned Long Lake project in Athabasca oil sands in northern Alberta, hurt by boiler interruptions and other operational issues.

Opti Canada said it plans to use C$122 million of the C$150 million budgeted expenditure for development of Long Lake, in which Nexen Inc NXY.TO owns a 65 percent interest.

Last month, Nexen had said output at its C$6.1 billion ($6 billion) Long Lake oil sands project will remain below its design rate through 2011 as it continues to work the bugs out of the project. [ID:nN16114618]

Opti Canada said it will invest about C$22 million at the Kinosis project in Alberta and use about C$6 million for development of the Leismer and Cottonwood projects in the province.

Bitumen production at the Long Lake project averaged about 26,200 barrels per day (bbl/d) in November. It also said December month-to-date bitumen production levels average about 28,300 bbl/d.

The Calgary, Alberta-based company’s shares, which have lost 60 percent in value in the past six months, shares were trading down about 4 percent at 73 Canadian cents in morning trade on Tuesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Maju Samuel)

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