Far East Energy's Output at Shouyang CBM Block Reaches 2,256 Mcf/d

Far East Energy Corporation, operator of Shouyang coal bed methane block in Shanxi Province in China said Thursday that gas production had reached 2,256,466 cubic feet per day (2,256 Mcf/d) as of March 11, 2014.

This is up 11% from the production figure released February 12th, and is over 3 times higher than the average 738 Mcf/d produced for the week ending November 12, 2013. 

"We continue to take a conservative approach to the rate of increase of production from Shouyang and are gradually allowing gas production to rise, while optimizing continued water production – a classic approach to CBM production; and thus we are very pleased that we have nevertheless seen a tripling in gas production in the past 4 months," CEO Michael McElwrath said.

Far East also said that submission of the draft Overall Development Plan (ODP) for the core production area at Shouyang is also expected in the near future. 

"We look forward to completion of the ODP process, but would also note that we have been producing and selling gas on a pre-ODP basis since 2011 and are already seeing the combined benefits of higher gas production and approximately $9/Mcf gas price that we are now receiving," McElwrath said.

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