New Wells Push Far East Energy's China CBM Sales Higher in First Half

Far East Energy Corporation, the US listed company that operates the Shouyang coal bed methane block in China’s Shanxi province, on Thursday reported half yearly revenue of $2.2 million, a 209 percent rise compared with same period last year.  

Compared with a relatively weak second quarter in 2013, revenues for the three-months ended June 30, 2014 increased 324% to $1.1 million, the company stated.

Gas sales volumes for the six months ending June 30, 2014 averaged 1.35 MMcf/d, up 126% from the same period in 2013, resulting from the newly drilled and fracked wells, the company said.

According to Far East Energy, the performance reflects strong increase in gas production and gas sales resulting from the 2013 drilling and fracking program and the significant increase in gas prices being received in 2014 compared with 2013.

Following the previously announced increase in the sales gas price, the average price received for gas sales, inclusive of subsidies and refunds, was $8.87/Mcf in the first half of 2014, up 37% over the same period in 2013, the company added.