Transeuro Energy Corp. (CVE:TSU) saw its shares rise more than 40 per cent Monday after it said December gas production from the Beaver River field in Canada increased substantially.
December gas production from the the field was 1,314,960 cubic metres, or an average of 42,418 cubic metres per day, compared to November production of 782,230 cubic metres or an average of 26,074 cubic metres per day.
Output last month was reduced for the first 10 days due to high pipeline pressures after the November plant shutdown that contrained field compressors at the time. The compressors have since returned to the long-term trend, the company said.
Transeuro believes there is significant value at its Beaver River shale asset in Canada despite the low natural gas prices there.
The company said earlier in December that it received farm-in interest from several parties and intends to pursue these “with commitment and strong resolve”.
It came as the board met to address the challenges it faces while a review of the Ukraine operations and negotiations with the government regarding the licence and joint activity agreement are being finalized.
“Combined with lower industry drilling and equipment costs the company believes there is a window of opportunity to develop this asset [Beaver River] to a significant play,” the statement read.
“The existing acreage together with nearby opportunities constitutes the immediate focus for shareholder value.”
The company said a variety of projects have been reviewed over the past few months and it will concentrate its efforts on three options: its Beaver River asset, its Ukrainian operations, as well as a number of “distinct oil projects”.
The company said its Ukraine operations need a strong joint venture model and tight co-operation with local partners and the government. The board wishes to go ahead with the licences with suitable financial partners, it also told investors.
Transeuro added that the board is guiding the management team “with a sense of urgency” and has set a target of three to six months to make headway on the options or even conclude them.
Shares in Transeuro were higher this morning, lately changing hands at 3.5 cents.
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