Varie
Far East Energy Announces 42% Increase in Gas Price for 2014 and Operations Updates
In addition to the increased base price, the current subsidies of 0.25 RMB /m will mean a total price of US $9.07 /Mcf for gas production in 2014. If previous pronouncements made by various government sources to the effect that there will be an increase in the subsidy to a total of RMB 0.65 /m are implemented, Far East Energy's price will then rise to approximately $10.93 /Mcf; or, a 62% increase on current gas pricing based on the current RMB/USD exchange rate.
Commenting, CEO Mike McElwrath said, "Obviously this is an exceptionally high gas price and we are grateful for the assistance of CUCBM in our recent negotiations. This is pricing that would be exceptional for onshore gas anywhere in the world, and we are gratified by this accomplishment. This new pricing underlines the growth in demand for domestically produced natural gas in China as households, city fleets and industry are increasingly being converted to run on natural gas, substituting for more expensive and/or polluting coal, diesel and fuel oil. In and around Shouyang we are seeing the positive results of local households receiving our gas and residents are pleased to be receiving a clean domestic fuel source. The trend in Chinese natural gas prices is upward, and Far East is well-positioned to benefit from these current price increases."
Updating its announcement of December 12 that gas production had increased to 1,034,038 cubic feet per day (1,034Mcf/d), the Company announced that production for December 15 was 1,157,967 cubic feet per day (1,158Mcf/d).
Based in Houston, Texas , with offices in Beijing , and Taiyuan City, China , Far East Energy Corporation is focused on coalbed methane exploration and development in China .