Far East Energy Reports 78% Rise in Gas Sales Volumes

Far East Energy, operator of Shouyang CBM block in Shanxi Province, China, on Thursday announced 78 per cent rise in gas sales volumes in the first quarter of 2014.

The rise is attributed to multi-well drilling and fracking program completed during 2013. 

Revenues during the quarter was up 138% compared with the same period in 2013.

The company cites two factors as the reason for jump in revenues. First is increase in gas contract price for 2014 following negotiation with off-taker, Shanxi Provincial Guoxin.  Second reason the company cites is higher average gas price of $8.90/Mcf, up 38% on year, received during the quarter.

Commenting, CEO and President Michael McElwrath said, “It’s rewarding to see that the work put into the Shouyang Block in 2013 drilling and fracing new wells has resulted in a significant increase in production and revenues during the first quarter of 2014.”

Separately, the company has released an updated reserves report as of December 31, 2013. 

Reserves have been upgraded from the Proved Undeveloped category to the Proved Developed category, to leave overall 1P and 2P reserves at similar levels, of 301 Bcf and 439 Bcf, respectively.