Untitled Document
Untitled Document

Far East Energy releases report indicating high potential in Shouyang CBM Block

Far East Energy Corp.

Far East Energy Corp. announced today the release of an independent engineering report prepared by Resource Investment Strategy Consultants (RISC) with respect to its coalbed methane (CBM) contingent resources located in its Shouyang block in Shanxi Province, China as of December 31, 2011. The contingent resource estimates in the RISC report were prepared to the standards recognized by the Society of Petroleum Engineers (SPE) in the Petroleum Resources Management System (PRMS).

The RISC report estimates the net contingent resources at the 2C (Best Estimate) level of confidence for the Shouyang block under PRMS standards to be approximately 1.1 trillion cubic feet (tcf), with estimated future net revenue, on an NPV10 basis, of approximately US$2.6 billion. The report estimates net contingent resources at the 3C (High Estimate) level to be approximately 1.3 tcf, with an estimated NPV10 of US$3.78 billion; and, the 1C (Low Estimate) is 736.1 billion cubic feet, with an estimated NPV10 of US$1.19 billion.  

Commenting on the RISC report, CEO Michael McElwrath said “As expected, these are excellent numbers that indicate the high potential of the Shouyang Block. These additions to contingent resources reinforce the potential and the significance of both the high permeability and the high gas content of the Block.  As a result, we believe that we, and our partners at China United Coal Bed Methane, have stewardship of a CBM block in China with textbook geological characteristics capable of being converted into strong value for our shareholders.”

In January, the company released positive test results from three additional appraisal wells located at significant distances from the 1H Pilot Area in the company’s Shouyang Block.

Related Articles

Far East Energy receives extension of existing loan facility

07/11/2014 Far East Energy Corp., the US-listed company that operates the Shouyang coalbed methane production sharing contract in China's Shanxi Province, reports a further extension of the maturity date of i...

Far East Energy extends exploration for Shouyang block Area B

12/12/2013 Far East Energy Corp. reports  that, as a result of  negotiations concluded  Dec. 6 with China United Coalbed Methane Corp., the parties have extended the exploration period of the p...

Far East Energy provides 2013 drilling program update

08/09/2013 Far East Energy Corp., which operates the Shouyang coalbed methane Production Sharing Contract (PSC) in Shanxi Province, People’s Republic of China, has recently updated the market on recent drilli...

Far East Energy provides update on its 2013 drilling program

07/18/2013 Far East Energy Corp. (OTCBB: FEEC) has nine new wells that have commenced drilling in the 21 days since the last 2013 drilling program update release issued on June 27, bringing to 52 the total nu...

EP Energy takes center stage as deal markets remain on the slow side

07/11/2013

PLS reports that from May 17 to June 16, 2013, the pace of US oil and gas deal activity slowed to just 27 deals for $2.5 billion (versus 45 deals for $2.1 billion last month).

More Oil & Gas Financial Articles

Far East Energy receives extension of existing loan facility

Fri, Jul 11, 2014

Far East Energy Corp., the US-listed company that operates the Shouyang coalbed methane production sharing contract in China's Shanxi Province, reports a further extension of the maturity date of its existing bridge facility with Standard Chartered Bank.

Far East Energy extends exploration for Shouyang block Area B

Thu, Dec 12, 2013

Far East Energy Corp. reports  that, as a result of  negotiations concluded  Dec. 6 with China United Coalbed Methane Corp., the parties have extended the exploration period of the portion of the Shouyang block identified as “Area B” until June 30, 2016.

Far East Energy provides 2013 drilling program update

Fri, Aug 9, 2013

Far East Energy Corp., which operates the Shouyang coalbed methane Production Sharing Contract (PSC) in Shanxi Province, People’s Republic of China, has recently updated the market on recent drilling and fracing activities.

Far East Energy provides update on its 2013 drilling program

Thu, Jul 18, 2013

Far East Energy Corp. (OTCBB: FEEC) has nine new wells that have commenced drilling in the 21 days since the last 2013 drilling program update release issued on June 27, bringing to 52 the total number of wells spudded in 2013.

EP Energy takes center stage as deal markets remain on the slow side

Thu, Jul 11, 2013

PLS reports that from May 17 to June 16, 2013, the pace of US oil and gas deal activity slowed to just 27 deals for $2.5 billion (versus 45 deals for $2.1 billion last month).

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ