Far East Energy Corporation, the US-listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, has received approval for its ODP ‘Road Pass’ for the Area A section of the Shouyang PSC.
As of September 15, the company received confirmation from its PSC partner, China United Coalbed Methane Corporation (CUCBM), that the National Energy Administration (NEA), within the National Development and Reform Commission (NDRC), had approved the ‘Road Pass’ for the Nanyanzhu section of the Shouyang PSC. This section covers the A1 core development and production area in the north section of the Shouyang Block.
This is an important milestone for the company and for the Shouyang CBM project. In its approval, the NEA stated: “This project is a key construction project in the national CBM industry development planning,” underlining the Shouyang Block’s significance in the development of the CBM industry in China.
Receipt of the ‘Road Pass’ is a major milestone allowing the company to proceed with important infrastructure processes and preparations (including land, grid power, environmental protection and related preparations) in Area A while awaiting final regulatory approval.
Area A, which contains most of the company’s proved reserves, will officially exit the exploration period and commence the development period when the ODP receives final regulatory approval, which is expected during 2015.
Far East’s CEO Mike McElwrath says, “The company is very pleased with the fast approval of its CBM ODP ‘Road Pass’, which was granted, from submission to approval, within a few short months, underscoring the importance of the Shouyang CBM project.”
Based in Houston, Texas, with offices in Beijing, China, Far East Energy Corporation is focused on coalbed methane exploration and development in China.