Advisers to First Calgary Petroleum, the lately high-flying Toronto and AIM-listed oil and gas developer, say talks about a possible sale of the company are still proceeding as 'one alternative' strategy in a strategic review that could 'require at least 45 days days to complete'. Robert Tyerman reports.

Shares in First Calgary, at £1.5 billion the most highly valued company on AIM, have perked up 55p to 878.5p today after the company's adviser Lehman Brothers Europe moved to quench bearish rumours about a review now under way about the options facing the Alberta-based company. Tony Durrant, head of corporate finance at Lehman Brothers Europe, says drilling will start early next month at First Calgary's key Rhourde Yacob Block 406a in Algeria's Berkine Basin and suggests one option being reviewed is the sale of the company.

First Calgary cheered investors in January with reserve estimates of probable and possible reserves of 13.5 billion cubic feet of gas, potentially worth between £2 billion and £4.8 billion in the Berkine Basin. In February, when the shares, floated three years ago at 52p, hit 952p, we suggested partial profit-taking.

It is worth holding on to the remainder in case the negotiations lead to a deal.