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Far East Energy reveals gas production rise from the Shouyang Block

23rd January 2014

Far East Energy Corporation has announced that gas production from the Shouyang Block has increased since January 7, 2014

Far East Energy Corporation announces gas production rise from Shouyang Block

Far East Energy Corporation, an American company that handles the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, China has revealed that there has been a continued rise in gas production from the Shouyang Block since January 7, 2014. 

After its January 7th announcement, production, as of January 20th, from the Shouyang Block had reached 1,797,499 cubic feet per day (1,797 Mcf/d).

This is up an additional 7 per cent from the production figure released January 7th, and up 143 per cent from the 738 Mcf/d produced for the week ending November 12, 2013. Production growth is still coming from both new and older wells. 

Far East Energy CEO, Mike McElwrath, said, "Since mid-November, we have seen daily gas production increase by over 1 million cubic feet per day, and this steady and significant production growth is what we have been seeking with our diligent dewatering efforts. We believe a tipping point has been reached."

The company also revealed that the testing of eight additional appraisal wells has had significant results in terms of gas content, with all wells showing good to exceptional permeability.

Huw Williams, the company's Head of Asian Investor Relations, commented in response to questions asked at the recently held Credit Suisse E&P corporate day in Singapore, that "The recent strong growth in gas production confirms our view that Shouyang is a stand-out CBM Block in China, combining unique high-permeability coals, with a 20-year take-or-pay pipeline contract at USD 9 per Mcf. The extensive drilling, fracing and production program in 2013 has significantly de-risked the engineering and geological aspects of the project and paves the way for a strong 2014."

 

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