Far East Energy Updates Shouyang CBM PSC Operations

Far East Energy, the US listed company that operates the Shouyang CBM PSC in Shanxi Province of China, has provided production update for the block. 

Gas production from the Shouyang CBM PSC averaged 1.93 MMcf/d in May 2014, compared with 2.1 MMcf/d in April and 2.2 MMcf/d in March.  Thus far in June 2014, production has averaged 1.93 MMcf/d, the company said Tuesday. 

“The intention of the drilling campaign completed late last year was to produce the wells at a conservative pace in order to maximize the zone of desorption around each wellbore so as to maximize ultimate production from the field.  With production growing by almost 300% since last November and having maintained this general level of production for almost five months now, the company is pleased with the results of the drilling program,” Far East Energy said.   

Daily sales gas volumes have continued to increase each month through May and into June.

“Sales production levels have continued to increase with production being sold and delivered in accordance with the terms of the company’s Gas Sales Agreement. As we proceed toward full development of Shouyang, we continue to make the operations more efficient,” said CEO Michael McElwrath.

Meanwhile, Far East Energy said it is in talks with third parties to enter into a farmout agreement or an outright sale of the company.