Far East Energy Reveals 10.3m Coal Seam in Shouyang Block

Far East Energy Corporation which operates the Shouyang Block coalbed methane (CBM) Production Sharing Contract in Shanxi Province, China, in partnership with China United Coalbed Methane Co has said that in the southern and eastern sections of the block, recent appraisal wells have revealed coal seam thickness as high as 10.3 meters in the target #15 coal seam, which compares to previously known ranges of 3-5 meters of thickness.

The company also said that since early June when the first group of wells were fraced, weekly water production across the Shouyang Block 1H core production area has risen 54%.

This increase in field water production results from the first 26 wells fraced and placed on pump in 2103, the company said. An additional 8 wells will soon be placed on pump, which will further add to the water production.

Commenting, CEO Michael R. McElwrath said, "Historically, this is exactly what we should expect to see from a high-permeability, high gas content CBM project. As new wells continue to come on-stream, and water production continues to increase, sufficiently de-pressurizing the seam, the high levels of CBM gas contained in the seam should be released and produced."

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