Canadian oil firm increases exploration

CALGARY, Alberta, May 9 (UPI) -- Duvernay Oil Corp. of Calgary, Alberta, has added $50 million to its 2008 capital plan.

DOC and other oil firms are able to invest more in exploration and production because of higher revenues from record-high oil and gas prices, the Calgary Herald reported.

The oil and gas firm has increased its exploration and production budget from $400 million to $450 million, and there are also plans to expand its leased drilling rig fleet to 11 rigs from nine so it can deliver an extra 115 million cubic feet of natural gas per day by next year.

"I think our production growth and cash flow growth were what was expected," President and Chief Executive Officer Mike Rose said.

DOC reported a record quarterly cash flow Thursday of $73.2 million, an increase of 15 percent from the same time last year. Production averaged 24,102 barrels of oil equivalent in the first quarter, also a 15-percent increase over first quarter 2007.

Duvernay plans to drill 35 gas development wells in northeastern British Columbia and 70 gas wells in the Alberta Deep Basin by spring 2009.