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Gold/Mining/Energy : canadian hunter exploration -- Ignore unavailable to you. Want to Upgrade?

To: reg who wrote (6)	5/31/1999 12:23:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 11

Canadian Hunter stock jumps after it raises targets CALGARY, May 31 (Reuters) - Stock in high-flying natural gas producer Canadian Hunter Exploration Ltd. (Toronto:HTR.TO - news) jumped by more than 11 percent on Monday after the company announced an increase in capital spending and raised production targets. Calgary-based Canadian Hunter, whose stock has more than doubled since it began trading just five months ago, climbed C$2.05 to C$20.25 on strong early volume of 266,512 shares on the Toronto Stock Exchange. The company said last week that it increased its 1999 capital spending budget by nearly 12 percent to C$240 million to follow up on exploration success during the winter. It also raised its 1999 production target to 430 million cubic feet of gas equivalent a day from the previous 415 million. It was the second time in two months Canadian Hunter, known for its gas drilling along the Alberta Rocky Mountain foothills, boosted its production outlook. Peter Linder, analyst with CIBC Wood Gundy, said he raised his 12-month target price for Canadian Hunter by C$3 to C$27 a share as a result of the higher forecast and continuing strength in Canadian gas prices. ''If there is one no-brainer out there, this is the one,'' Linder said. He also pointed out that Canadian Hunter appeared to be solving its one big problem -- high payable income taxes -- as a result of the increased capital spending. The move will create ''tax pools'' for Canadian Hunter, so it can defer its taxes. Analysts had said earlier this year they expected the company to launch an acquisition to cure its tax woes. Bronfman family holding company EdperBrascan Corp. (Toronto:EBCa.TO - news) holds 40 percent of Canadian Hunter's stock, a position Linder said he believed it would retain despite the run-up in the share price. Canadian Hunter began trading as a stand-alone natural gas producer after resource concern Noranda Inc. (Toronto:NOR.TO - news) spun it off to shareholders at the end of 1998. ($1=$1.47 Canadian)