January 14, 2011 / 3:49 PM / in 7 years

Emerge Oil shares slip as 2010 production exit lags estimate

Jan 14 (Reuters) - Shares of Emerge Oil & Gas Inc EME.TO fell as much as 10 percent on Friday, a day after the company’s 2010 production exit lagged its own forecast.

Emerge exited 2010 with field production of about 6,600 barrels of oil equivalent per day (boe/d), below its forecast of 7,700-8,000 (boe/d).

The company also forecast 2011 production at 7,000-7,200 boe/d and set a capital budget of C$75 million for exploration and development activities.

The company also expects to exit 2011 with net debt of C$55-C$60 million, compared with C$40 million in 2010.

However, the company expects fourth quarter sales to more than double to 5,970 barrels of oil equivalent per day (boe/d).

Shares of the company were trading down 5 percent, or 15 Canadian cents, at C$3.14 on Friday on the Toronto Stock Exchange. They had touched a low of C$ 2.96 earlier in the session. (Reporting by Aftab Ahmed in Bangalore; Editing by Prem Udayabhanu) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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