Far East gets Shouyang extension

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Extra time: Far East gets four more years to explore the Shouyang Block

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Danica Newnham

 10 July 2012 08:25 GMT

Texan-based Far East Energy has received a four-year extension to the exploration period of its key coalbed methane (CBM) production sharing contract, at the Shouyang Block in China’s Shanxi Province.

The CBM developer stated that the formal approval from China’s Ministry of Commerce allowed for the continued exploration of the contract area, and freed up further financing for more drilling.

Under the terms of the approved modification agreement with Shouyang Block partner China United Coalbed Methane Corporation (CUCBM), the four-year extension period covers about 1203.6 square kilometres of the Shouyang Block until 30 June 2015. In addition, a two-year period will cover about 490 square kilometres of the area until 30 June next year.

“We have drilled twenty appraisal wells covering every area…

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