The company’s annual production in 2007 increased 15% to 3.3 billion cubic feet equivalents (bcfe), compared to 2.9bcfe in 2006. Production in the fourth quarter of 2007 was 0.92bcfe, an increase of 18% on a period-over-period basis and 11% from third quarter 2007 levels. The realized sales price for natural gas, which represents 97% of the company’s proved reserves, averaged $8.06 per million cubic feet (mcf) in the fourth quarter of 2007 and $8.19 per mcf for the year as a whole.
The company drilled 48 gross (21.9 net) wells during the fourth quarter of 2007 and a total of 217 gross (82.2 net) wells for the year as a whole, compared to 226 gross (65.5 net) wells in the prior year.
William Daugherty, president and CEO of NGAS Resources, said: Our significant increase in production reflects the evolution of our business model for accelerating organic growth by retaining larger net positions in new wells on our operated properties.
