First Calgary CEO warns his ouster will mean delay

(In U.S. dollars unless noted)

By Jeffrey Jones

CALGARY, Alberta, March 20 (Reuters) - First Calgary Petroleums Ltd's (FCP.TO: Quote, Profile, Research) chief executive, embroiled in a nasty fight with investors seeking to oust him, warned on Thursday that changes to the company's management could delay the start of its $1.3 billion Algerian gas project.

First Calgary is trying to finalize financing for the development against a backdrop of shaky credit markets while London-based Waterford Finance & Investment, which owns 9.4 percent of the stock, mounts a proxy fight to turf CEO Richard Anderson and elect a slate of directors.

"I believe, as does the majority of the board, that this would be extremely detrimental to long-term shareholder value as it would most likely result in direct and significant delays in the company's goal of first production," Anderson said on a conference call.

First Calgary, whose stock price has declined 89 percent since hitting a high of C$24.90 as it considered selling itself in February 2005, aims to start production in the second half of 2010.

The battle for First Calgary is expected to come to a head at the annual meeting on April 8, when Waterford director Michael Kroupeev and his associate, onetime Russian Energy Minister Yuri Shafranik, will try to attract enough support for their shareholder revolt.

Kroupeev issued a circular on Wednesday that accused Anderson of failing to meet self-imposed deadlines for getting the project started, of being unable to secure a long-term financing solution and of being responsible for the failure to sell the company aat a premieum price three years ago.

Waterford has nominated six directors, including Canadian and international oil men, a financier and a securities lawyer, all independent of First Calgary's management.