CALGARY (CP) -- Innova Exploration Ltd. has nearly doubled its capital spending this year in part to develop recently acquired oil and natural gas properties.
The junior Calgary-based company said Monday its board had approved an updated operational plan and an increased capital spending budget of C$69.4 million for this year. The figure is C$33.5 million higher than the previously approved 2005 budget of C$35.9 million and reflects potential development of properties recently acquired through the takeover of Globex Resources Ltd.
That deal closed May 31.
The increased capital budget also reflects expanded drilling plans related to favourable initial geological tests at energy properties at Pheasant, Sask. and Blair, B.C.
Innova expects to drill a total of 70, or 36.8 net, wells in 2005 including a number of new pool exploratory wells in its core areas of southeast Saskatchewan, northeast British Columbia and central and southern Alberta.
After the recent acquisition of Globex, Innova is currently producing about 3,000 barreles of oil equivalent output a day, 58 per cent of which is natural gas.
''With existing working capital, proceeds from planned property dispositions and strong operating cash flow combined with Innova's unused credit facility, the company will have more than adequate financial resources to complete the 2005 capital expenditure program,'' Innova said in a release.
In trading on the Toronto Stock Exchange on Monday, Innova shares [TSX:IXL] gained 12 cents to close at C$6.20, a gain of nearly two per cent.
