December 17, 2010 / 12:47 PM / 7 years ago

UPDATE 2-PetroBakken sees normal Cardium ops in Q1, shares rise

* To bring 14 wells into production in rest of Dec

* Avg initial 30-day prod from first 11 wells at 245 bopd

* Avg initial 7-day prod from 13 wells was 415 bopd

* Avg 7-day, 30-day results better than peers - analyst

* Shares up as much as 7 pct (Recasts, adds details, analyst comments, share movement)

By Arnika Thakur

BANGALORE, Dec 17 (Reuters) - PetroBakken Energy Ltd PBN.TO reported strong initial production rates at its Cardium light oil resource play in Alberta, and expects the play to resume normal operations by the end of the next quarter, sending its shares up as much as 7 percent.

Wet weather conditions in Alberta have hit the oil and gas explorer’s drilling activities and affected its expansion plans for a better part of this year.

The Calgary, Alberta-based company said it expects to get 14 Cardium wells ready for production in the rest of this month, which marks the end of its fourth quarter. It has brought 16 wells into production from November-to-date. The average initial 30-day production rate from the first 11 wells was 245 barrels of oil per day (bopd) and average initial 7 day production rate from first 13 wells was 415 bopd, PetroBakken said in a statement.

“The (production) numbers are at the high end of what any other competitors are saying for the same period of 7 and 30 days, so I think they are getting top results for sure,” Haywood Securities analyst Alan Knowles told Reuters by phone.

In Oct, Daylight Energy Ltd DAY.TO, which also operates in the Cardium play, reported 7-day rate of 417 barrels of oil equivalent per day (boe/d) and a 30-day rate of 247 boe/d, including natural gas.

Knowles, who has a sector outperform rating on PetroBakken’s stock, said once the wells are completed, there will be a significant rise in production.

“These results continue to meet our original expectations for productivity from Cardium horizontal wells, and we anticipate further improvements in productivity and capital efficiencies from our drilling and completions operations,” the company said.

The company, in which Petrobank Energy and Resources PBG.TO has a 59 percent stake, also owns some Bakken reserves as well as assets in the Horn River and Montney natural gas resource plays in northeast British Columbia.

PetroBakken’s shares were trading up 6.8 percent at C$20.45 Friday on the Toronto Stock Exchange, comfortably outpacing the 0.15 percent rise in the broader S&P TSX Energy index .SPTTEN. (Additional reporting by Amruta Sabnis and Aftab Ahmed in Bangalore; Editing by Anne Pallivathuckal, Jarshad Kakkrakandy)

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