Far East Energy Starts Drilling in Shouyang Block

Far East Energy Corporation has started its 2013 drilling campaign in Shouyang Block, Shanxi Province in China.

Two drilling rigs are already operating on location in the Shouyang Block and additional rigs have been mobilized and are expected to begin drilling operations within the next three weeks, the company said in a statement.

In the 2013 drilling program the company is initially targeting to drill 70 wells in the core 1H Pilot Production Area to accelerate the drive toward rising gas production and sales levels. It is also aiming at an additional 25 appraisal wells across the block, in an effort to further identify the most prospective undeveloped sections of the block.

“With the Chinese Ministry of Land and Resources (MLR) having certified the Company's coalbed methane (CBM) resources as to its core 99.8 sq. km. acreage under the Shouyang PSC, the company is now in the process of preparing the overall development plan (ODP) application for submission.  The ODP application is expected to be submitted early in the second half of 2013,” the statement said.