Far East to Boost China CBM Drilling Operations

Far East Energy is seeking to refinance a project loan it obtained in November from Standard Chartered Bank, to finance boost its coal bed methane drilling operations.

In 2002, Far East signed two cooperation agreements with state-owned China United Coalbed Methane to explore and develop projects in Yunnan province. In 2003, it acquired rights from U.S.-based ConocoPhillips to develop other projects in Shanxi province.

The firm had been drilling extensively in the Shouyang area in Shanxi, including 26 wells in 2010 and 33 last year. It hopes to increase drilling to between 200 and 250 wells this year, 300 to 400 next year, and 500 in 2014.