China

Nov. 30, 2009
Far East Energy Corp., Houston, let contracts for five rigs that are to begin drilling coalbed methane development wells starting in mid-December 2009 on the Shouyang block in China’s Shanxi Province.

By OGJ editors
HOUSTON, Nov. 30
– Far East Energy Corp., Houston, let contracts for five rigs that are to begin drilling coalbed methane development wells starting in mid-December 2009 on the Shouyang block in China’s Shanxi Province.

Gas production on the block has surpassed 400 Mcfd as earlier wells dewater. Far East plans to drill and frac nine new wells by mid-February 2010 and frac its existing P4 well.

Eight of the new wells will continue the westward expansion of the high permeability field, and one will be a new parameter well several kilometers west to test extent of the high permeability-high gas content area.

Two pipelines and one local distribution-compressed natural gas company have indicated a desire to purchase the gas produced from the Shouyang Block.