UPDATE 2-Baytex Energy profit falls 70 pct on weak oil prices

* Q3 net income C$0.37/unit vs C$1.39/unit year ago

* Q3 sales down 43 pct to C$208.2 mln

* Sees Q4 production of 42,500-43,000 boe/d

* Says to drill 4 more horizontal wells at Seal in Q4 (Recasts, adds details, analyst comments)

By Ashutosh Joshi BANGALORE, Nov 10 (Reuters) - Baytex Energy Trust's (BTE_u.TO) quarterly profit dropped 70 percent as weaker oil prices continued to hurt the Canadian oil explorer.

Baytex, a major producer of heavy oil, however, said it was bullish over the near-term outlook for heavy oil, backed by rising investment in refining and transportation infrastructure, and looming commencement of shipments on a major oil pipeline.

The company, which is expanding its operations in Seal area in northern Alberta, said it drilled eight wells at the property during the quarter and expects to drill four more horizontal wells in the fourth quarter.

Currently, Baytex has 58 horizontal producing wells at Seal.

"These wells are very economic to drill and the pricing for heavy-medium grade oil is strong. So, I think they generate very economic returns on those wells," BMO Capital Markets analyst Gordon Tait said by phone.