Far East Energy Continues to See Higher Gas Output at China CBM Block

Far East Energy has reported continuous rise in gas production from the Shouyang block in Shanxi province of China.

According to the company, gas production at Shouyang for December 29, 2013 reached 1,569,270 cubic feet per day (1,569 Mcf/d), up 11% from the date of the last release on December 20, 2013, and up 113% from the 738 Mcf/d produced during the week ended November 12, 2013.

"We are now beginning to see the potential of the Shouyang block and the production characteristics of a high permeability CBM reservoir," said CEO Mike McElwrath.

He added that in conjunction with the gas price rise already announced for 2014, when the company will be receiving a price of approximately $9.00/Mcf, the higher production figures should translate into improved sales revenues in 2014. 

“We remain very active in the field having tied 15 wells into the gathering and sales system in the last 14 days, with another seven wells scheduled to be tied in over the next 10 days," he concluded.

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