Far East Energy Open to Takeover, Stake Sale

Coal bed methane explorer Far East Energy is in talks with global energy companies for a possible takeover or a stake sale, Bloomberg reports.

Bloomberg reports that talks are in early stages and company’s Chief Executive Officer Michael McElwrath declined to disclose financial details or a timeline. The company, which explores for coal-bed methane in China’s Shanxi province, will drill 70 wells this year, bringing its total to about 135, he said. The company plans to drill 400 wells next year, he told Bloomberg.

Large-scale commercial shale gas production in China is at least a decade away and, in the interim, coal-bed methane will be a bridge fuel that helps China increase gas usage and get away from coal, McElwrath said.

He expects more than 10 percent of domestic Chinese natural gas would come from coal-bed methane projects.