Far East Energy gets $25M loan for China CBM project

Far East Energy Corp. has announced the approval of a $25 million loan from Standard Chartered Bank.

The company plans to use these funds to further develop its Shouyang coalbed methane project in Shanxi Province, China by expanding from 85 wells up to 200 wells.

Although the project needs the drilling of another 100, it will depend on the company’s planned joint venture.

The company also recently extended its exploration period for its Shouyand project in November.

In regards to possibly expanding into the growing Chinese shale gas market, the company said it is considering an offer from China United Coal Bed Methane Corp. for partnering in a future shale gas project.

However, for the time being, the company is focused on coalbed methane.