Far East Energy Corp. (OTC Markets: FEEC) has announced that production wells 115V and 119V have reached total depth; preliminary gas content has been determined for the SYE03 appraisal well; and two more wells have been commenced since our May 10th release. The newly spudded wells are the SYE-16, a new appraisal well, and the 62-2V, an additional production well, bringing to 16 the number of wells spudded thus far in 2013.
Meanwhile, preliminary results from the testing of core samples from the SYS-03 appraisal well, which is located in the east-to-southeast portion of the Shouyang Block, roughly 27 kilometers southeast of the 1H Pilot Area, indicate gas content for the #15 coal seam of approximately 25 cubic meters per ton or over 800 standard cubic feet per ton. This very high gas content is similar to the high gas content of over 900 scf/ton measured in the SYS-05 well, which is located in the far southeast sector of the Shouyang Block, approximately 37 kilometers south of the 1H pilot Area.
"We are adding new wells at a clip of two to three per week at the moment, now have 13 rigs in the field with more arriving in the next few days, and two additional wells should spud by this weekend," said CEO Michael McElwrath. "I was on the ground in the Block today, and the activity level is remarkable, as is the performance of our team in the field. Twelve wells now await fracing, and commencement of the frac program is imminent. Once the program kicks off, it will likely continue uninterrupted though the early fourth quarter, as new wells reach total depth and join the queue to be fraced."
Alex Yang, senior vice president for Exploration commented, "Together with SY-P12, SY-P18, and SYS05, these preliminary results from the SYS-03 indicate that coals of very high gas content cover a vast portion of the eastern Shouyang block. This should be significant in our reserve and resource calculations."
Based in Houstonwith offices in Beijing, and Taiyuan City, China, Far East Energy Corp. is focused on coalbed methane exploration and development in China.