Far East Energy Corp. (OTC Markets: FEEC), the U.S.-listed company that operates the Shouyang PSC in Shanxi Province, People's Republic of China, has announced that 13 new wells have commenced in the 13 days since the last 2013 drilling program update release issued on Friday, June 14, bringing to 43 the number of wells spudded in 2013. Additionally, four wells reached total depth, and the 2013 frac program is well underway. Currently there are 30 rigs in the field.
CEO Michael R. McElwrath commented, "We now have 30 rigs in the field, substantially exceeding our announced target of 25, and have spudded wells at a rate equivalent to 1 well per day over the past two weeks. This is a level of activity that is unmatched by our peers in China and for which our team in the field."
The company also announced that preliminary results from the SYSE-09 appraisal well located in the far southeast corner of the block and more than 35 kilometers distant from the company's 1-H production Area, reveal a very thick number 15 coal seam of over 10 meters in thickness, with exceptionally high preliminary gas content readings. The well was completed to a depth of 1388 meters or 4554 feet.
Alex Yang, senior vice President for Exploration commented, "These results continue to indicate that the entire eastern half of the Shouyang block has coals of excellent thickness and high gas content representing an exceptional target for development of future production areas as well as reserves creation."
Based in Houston with offices in Beijing, and Taiyuan City, China, Far East Energy Corp. is focused on coalbed methane exploration and development in China.