Far East Energy Discloses Results of Drilling Program in Shouyang Block
Far East Energy Corporation, the U.S. listed company that operates the Shouyang Block coalbed methane (CBM) Production Sharing Contract in Shanxi Province, Peoples Republic of China, in partnership with China United Coalbed Methane Co., Ltd., announced Monday the latest results of its intensive 2013 drilling program.
Since early June when the first group of wells were fraced, weekly water production across the Shouyang Block 1H core production area has risen 54 percent. This increase in field water production results from the first 26 wells fraced and placed on pump in 2103. An additional 8 wells will soon be placed on pump, which will further add to the water production.
Commenting, CEO Michael R. McElwrath said, “We are exceptionally pleased to register such a strong rise in water production on the basis of the first 26 of our recently fraced wells being placed on pump across the past few months. This increase in water production, coming as it does from only 26 wells, clearly indicates the effectiveness of our new fracs, and we look forward to seeing how the next group of wells will further contribute to the dewatering of the field. Historically, this is exactly what we should expect to see from a high-permeability, high gas content CBM project. As new wells continue to come on-stream, and water production continues to increase, sufficiently de-pressurizing the seam, the high levels of CBM gas contained in the seam should be released and produced.”
Appraisal Wells Reveal 32.8 Feet (10 Meter) Coal Seam Thickness
As the Company continues to analyze the results of the appraisal well drilling program, in the southern and eastern sections of the Shouyang Block, recent appraisal wells have revealed coal seam thickness as high as 33.79 feet (10.3 meters) in the target #15 coal seam, which compares to previously known ranges of 9.84-16.4 feet (3-5 meters) of thickness.
McElwrath continued, “These recent appraisal well results further confirm the world-class nature of the Shouyang Block, as evidence of these thicker coals in the southeastern portion of Shouyang, coupled with high gas content, indicates excellent production potential. We hope to see this new data provide added uplift to our gas resources, and ultimately, to our valuation.”
Update Conference Call Announced
Far East will host a conference call to update shareholders and other interested parties on Tuesday, Oct. 8 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Robert Hockert, China Country Manager, and Huw Williams, Director of Asian Investor Relations, will discuss the 2013 drilling and operations program.
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