Far East Energy Corp. confirmed positive test results from three more appraisal wells located at significant distances from the 1H Pilot Area in the company’s Shouyang Block.
SYS-05 appraisal well
The SYS-05 appraisal well was drilled in the southeast portion of the Company’s Shouyang Block and is located approximately 35 kilometers south southeast of the 1H pilot area (the 1H Pilot Area is located near the midpoint of the northern boundary of the block). Final test results reveal the SYS-05 to have higher gas content than any well drilled by the company to date in the Shouyang Block, testing at a final average of 935 scf per ton (dry ash free), which is extraordinarily high gas content.
The well is currently producing 2180m3 (77 Mcf) per day, after peaking at 2915m3 (103 Mcf) per day, with the production rate being held back to ensure a steady rate of production is maintained to satisfy Chinese reserves requirements which require production averaging 2000m3 (70 Mcf) per day for 90 consecutive days. The total vertical depth is 1372 meters (4501 feet), and the #15 coal seam is 6.4 meters (21 feet) thick at this location.
P18 appraisal well
The P18 appraisal well, located in the eastern part of the Shouyang Block is approximately 22 kilometers east southeast of the 1H Pilot Area, and recently began producing gas. This well peaked at over 2831m3 (100 Mcf) per day and tested at a rate of over 2265m3 (80 Mcf) per day for a ten day period with a surface flowing pressure of 40 psi. The well is currently producing about 1132m3 (40 Mcf) per day. The top of the #15 coal at this location is at a depth of approximately 3510 feet, or 1070 meters, and the #15 coal seam is 3.85 meters (12.63 feet) thick at this location. Preliminary measured gas content for the P18 is estimated at 660 scf per ton (dry ash free). Permeability calculations have not been completed, but it is believed that this well may demonstrate the presence of good permeability at the eastern boundary of the block.
SYS-02 appraisal well
The SYS-02 appraisal well, located nearly 20 kilometers due south of the 1H Pilot Area has been producing since May 2011. Its depth is approximately 1274 meters or 4180 feet. The gas content of the #15 coal at this location was measured at 635 scf per ton (dry ash free), which is very high gas content, and the permeability is estimated to exceed 100 millidarcies. This is unusually high permeability for coal at this depth.
Commenting on the appraisal wells and test results, Michael R. McElwrath, CEO and president of Far East Energy, stated: “This now makes 17 out of 18 appraisal wells, drilled all over the Shouyang Block, that have confirmed very high gas content and strong potential. Of these, 15 wells have tested to have high permeability, with permeability not yet determined for the P18 and SYS-05. The news on the SYS-02 is exceptional, as we have now demonstrated high permeability in the #15 coal seam even at a depth of 1274 meters, or 4180 feet, which is far higher permeability than we expected. This holds open the possibility that the preponderance of the block will demonstrate world class gas content and permeability. The SYS-05 appears to be even more exciting, as its sustained production rate is impressive for a stand-alone appraisal well, and its gas content would be exceptional in virtually any CBM play in the world. ”
Far East Energy is based in Houston, with offices in Beijing, Kunming, and Taiyuan City, China. The company is focused on coalbed methane exploration and development in China.