Far East Energy Corporation announced on Oct 9 that it has successfully achieved continuous gas flow in its third horizontal well, the FCC HZ03, in the Shouyang Block of its Shanxi Province Project in China. The Company said additional production data will be needed to project a peak gas production rate. FCC HZ03 is the second well in Shouyang Block to provide continuous gas flow. Similar initial gas flow was announced for the FCC HZ01 well in May 2006.

"The ongoing well data from this first set of wells in the Shouyang Block is beyond our expectations," said Michael McElwrath, CEO and President of Far East Energy. "We have seen the high gas content that we anticipated, but the permeability appears to be much higher than expected."

McElwrath added, "As CBM experts know, high permeability is a desirable quality for long-term gas production. Although it requires a longer period of dewatering, high permeability in conjunction with high gas content and sufficient pressure generally results in higher gas production rates sustainable over a longer period of time. Based upon our preliminary data, we believe that wells drilled in this high permeability/high gas area should yield strong results."

Source:佚名