Far East Energy Sees Rise in Output at China CBM Block
Far East Energy Corporation, which operates the Shouyang block coal bed methane (CBM) Production Sharing Contract (PSC) in Shanxi Province in China on Thursday announced that there has been a significant increase in gas production in recent weeks.
“As of December 12, 2013, gas production has risen to over 1 million cubic feet per day, and now stands at 1,034,038 cubic feet per day (1,034Mcf/pd). Average production for the 7 days ending December 12, 2013 was 957.65 Mcf per day, representing a 30% increase over production for the week ended November 12, 2013, during which production averaged 738 Mcf/pd,” the company said.
Meanwhile, in consultation with its Chinese partner, China United Coalbed Methane Corp. (CUCBM), the company has agreed to extend the exploration period of the portion of the Shouyang block identified as “Area B” until June 30, 2016, and will drill at least 39 additional wells in Area B.
The parties have agreed to revise certain related terms of the PSC to reflect this agreement and intend to do so within 90 days. Area B is significantly larger, at 1103.1 km2(272,581.95 acres), than the company’s 1H core production area which contains 64.7 km2 (15,987 acres).
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