Far East Energy, with offices in Beijing and Taiyuan, the US-listed little powerhouse of a hydrocarbon developer that is focused on rich coalbed methane in Shanxi Province at their Shouyang Block (Shouyang PSC), reported today that they have spud their 43rd well of the year, as 13 new wells have gone in since the last program update, just 13 days ago, on June 14th.
This is an incredibly efficient pace of development, only sweetened by the fact that 4 wells have also reached their target depths, with the associated fracking program for the year also fully underway. Such rapid progress is great news for FEEC’s 2013 field operations, especially as preliminary data comes in off the SYSE-09 appraisal well in the southeast of the block (completed to just over 4.5k feet), showing a nice slab of No. 15 coal seam that is around 32.8 feet thick.
Now, looking at the fact that this is deep in the southeast of the block, some 21.75 miles from the main 1-H production area and that results came back with exceptionally high gas content readings, it should start to dawn on investors how much potential there is in the Shouyang for FEEC. The company certainly realizes the massive potential here and they are making huge infrastructural strides so far in 2013 to capture that potential.
CEO of FEEC, Michael McElwrath, was pleased to note that the company now has 30 rigs operating in the field, having blown past the original target of 25 and that they are doing phenomenal completion, at a rate of around a well a day for two weeks now. To even a sector novice this should appear as quite an impressive run for FEEC, something that is newsworthy in and of itself. Indeed, McElwrath was keen to point out this fact and explain that this level of activity far surpasses the company’s peers operating within the PRC, chalking the feat up to brilliant leadership by field ops GM’s Brent Lowson and Matt Murphy, as well as the stellar team of field personnel they have assembled.
Senior VP of Exploration for FEEC, Alex Yang, was bullish on the potential in the southeast block especially, something which is now even more firmly reinforced by the new appraisal well data. Yang characterized the coal seams of the entire eastern half of the block as being of exceptional target quality. Thickness, permeability, and high content spells a bright future for production or reserves in the eastern Shouyang, and FEEC shareholders are likely beaming today as this excellent news hits the wires.
For more info on Far East Energy, visit www.FarEastEnergy.com
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