Duvernay Stock Down on Share Issue Plans and Capital Cost Increase

Duvernay Oil Corp. (DVNLF.PK) shares were down slightly Tuesday afternoon after the company said it increased its 2008 capital program by C$50-million to C$450-million, and will also issue C$91-million in new equity.

Duvernay said the spending increase will be applied to its key operating areas in northeastern British Columbia and west-central Alberta, including the Montney Shale natural gas play in B.C. where an additional 14 to 16 horizontal wells are now planned by year-end.

The company will also almost double the capacity of its Groundbirch 4-15 gas plant to 80 million cubic feet per day during the second half of 2008.

The bought-deal financing will be for C$2-million common shares at C$45.50 each, with the net proceeds being used to fund the expanded capital program and for general corporate purposes.