The goal of the program is to accelerate the dewatering in the 1H Pilot area to lower the pressure and increase the amount of gas being produced in the Shouyang Block, the company said.
Far East is in discussions with three separate third parties regarding the potential off-take and sale of gas produced from the area. Far East believes it could initiate gas sales by the third quarter of 2010.
The focus of the winter drilling program is the drilling and fracturing of eight wells by early March. The five drilling rigs being utilized are now fully operational with the first of the wells having been spudded in December.
Of the eight wells, seven will expand the 1H Pilot area to the west and one parameter well will be drilled approximately 4km outside of the 1H Pilot area to the west in order to obtain further information regarding the geographic extent of the permeability/gas content area.
Moreover, the existing P4 parameter well will be fractured and the production from the #15 seam of the P2 parameter well will be temporarily suspended to accommodate the fracturing of the #9 seam using the same wellbore.
