In response to the rapid increase in gas production from its Shouyang Block in Shanxi Province, China that occurred in late November and December of last year, FEEC has announced that is has begun a robust winter drilling program. The goal of this drilling program is to accelerate the dewatering in the 1H Pilot Area to lower the pressure and increase the amount of gas being produced in the Shouyang Block.
"Winter is quite harsh in Shanxi Province, so December, January and February are normally months when companies cease drilling operations and evaluate results," said Michael McElwrath, CEO of Far East. "Temperatures have been as low as -17C (-5F), but instead of staying dormant, we have designed a workable drilling program and chosen to drill through the extreme conditions because we are enthusiastic about the ramp up in gas production and felt that those results call for us to do everything possible to maintain such positive momentum."
Garry Ward, Senior Vice President of Engineering, added, "The rapid increase in production that we experienced at the end of last year has indicated the capability of the highly permeable #15 coal seam. Although this increase is very positive, we believe that we have not yet seen the full capacity that is often associated with a coal seam that has the permeability of the #15 coal seam in the 1H Pilot Area. The winter drilling program is designed to begin to exploit this rise in gas production by increasing our water withdrawals and significantly enhancing gas production in 2010 as we seek to move this project toward gas sales and project financing."
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Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan City, China, Far East Energy Corporation is focused on CBM exploration and development in China.
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