HOUSTON, Jan. 22, 2014 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, announces a continued rise in gas production from the Shouyang Block since the latest release made on January 7, 2014.
Following its January 7th announcement that gas production at Shouyang had reached 1,676,518 cubic feet per day (1,677 Mcf/d), the Company is pleased to announce that as of January 20, 2014, production from the Shouyang Block has reached 1,797,499 cubic feet per day (1,797 Mcf/d).
This is up a further 7% from the production figure released January 7th, and up 143% from the 738 Mcf/d produced for the week ending November 12, 2013. Production growth continues to be seen from both new and older wells.
Commenting, CEO Mike McElwrath said, "Since mid-November, we have seen daily gas production increase by over 1 million cubic feet per day, and this steady and significant production growth is what we have been seeking with our diligent dewatering efforts. We believe a tipping point has been reached."
The Company also announced that the testing of eight additional appraisal wells has yielded impressive results in terms of gas content with all wells showing good to exceptional permeability. The test results for the eight wells are: (1) SYS03 at 693 standard cubic feet per ton (scf/t) and 45 millidarcies (mD); (2) SYE06 at 701 scf/t and 11 mD; (3) SYSE09 at 667 scf/t and 20 mD; (4) SYE10 at 1,019 scf/t and 10 mD; (5) SYW11 at 637scf/t and 12 mD; (6) SYW13 at 577 scf/t and 85 mD; (7) SYE16 at 760 scf/ton and 40 mD; and, (8) SYE18 at 916 scf/t and 40 mD.
"These are exceptional gas content and permeability numbers," McElwrath said, "which continue to verify our belief that the entire Shouyang block has significant potential."
In response to questions asked at the recently held Credit Suisse E&P corporate day in Singapore, the Company's Head of Asian Investor Relations, Huw Williams, said, "The recent strong growth in gas production confirms our view that Shouyang is a stand-out CBM Block in China, combining unique high-permeability coals, with a 20-year take-or-pay pipeline contract at $9 per Mcf. The extensive drilling, fracing and production program in 2013 has significantly de-risked the engineering and geological aspects of the project and paves the way for a strong 2014."
