By OGJ editors
HOUSTON, Oct. 5 -- Work has started on a proposed 60-well coalbed methane development drilling program and gas gathering system on the Shouyang block in China, said Far East Energy Corp., Houston.
The gathering system is to be placed in service around yearend to eliminate flaring and begin gas sales, the company said.
Three wells have been spudded in the past week, and all 60 are to be completed by mid-2011. Of the 60 wells, 51 are to be drilled in the 1H pilot area. Nine parameter wells will test the No. 3, 9, and 15 coal seams across the 242,000-acre northern half of the block. The No. 15 seam is the main target.
Far East will also fracture stimulate 10 wells, including 6 already-drilled wells in the 1H pilot area and 4 parameter wells as far as 16 km west of that area. The yearend production target is 2 MMcfd, double late-August output.
The company also plans to fracture stimulate five wells on the Laochang block in Yunnan to test two coal seams.
Rendering from Cedar LNG.
US Government Accountability Office.
