Far East Energy Spuds 30th Well in China

Far East Energy Corporation (FEEC) that operates the Shouyang PSC in Shanxi Province in China, last week announced that seven new wells have commenced in the 17 days since the last 2013 drilling program update release issued on May 28.

The company now has 25 rigs working in the field. “This level of activity takes us closer to the point at which we hit the critical number of production wells in our core production area," said CEO Mike McElwrath.

Speaking on CNBC Asia last week in Hong Kong, McElwrath underlined the importance of the Shouyang project to China's energy needs, saying "Significant shale gas production is likely a decade or more away in China, but CBM is here now and I believe CBM will be the forerunner to shale gas production, providing a major source of gas for China."

He said that Far East is extremely well positioned for a breakthrough year given the numerous opportunities that are opening up in its production area.

“With the increased deregulation of gas in China, along with increased market pricing, I believe that FEEC will be a leader in the CBM industry in China,” McElwrath said.