CALGARY – Bonavista Energy Corporation (TSX:BNP) increased its second-quarter profit by 14 per cent to $77.3 million and said Thursday it expects 11 per cent growth over its average production in 2010.
The Calgary company also said it has increased its capital budget for 2011 to between $580 million and $600 million, which will result in annual production of between 70,500 and 71,500 barrels of oil (boe) per day.
“This production target represents approximately 11 per cent growth over average 2010 production which, when coupled with our consistent dividend, will result in an attractive total return to our shareholders,” the company said in a news release.
Profit in the same quarter last year was $67.7 million.
Bonavista Energy increased its production revenues to $256 million versus $227.7 million in the same period in 2010.
But earnings per share declined to 49 cents in the quarter compared with 59 cents in the same quarter last year.
“For the remainder of 2011, our efforts will remain focused on the development and consolidation of our key resource plays,” the company said.
Bonavista Energy also announced Thursday that it will sell 7 million common shares at $28.55 per common share for gross proceeds of about $200 million.
The net proceeds of the offering will be used to partially fund the expanded capital program, up from between $345 million and $375 million.
About $180 million of this expanded capital program will be used for its acquisition program, the company said.
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