BullRaid

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Friday , July 27, 2007 03:12ET

By Staff Reporter
BEIJING, Jul 27, 2007 (XFN-ASIA via COMTEX) -- Houston-based Far East Energy Corp (BULLETIN BOARD: FEEC) plans to double its investment in coal-bed methane exploration in China over the next two years, the official Caijing magazine reported.
Michael McElwrath, CEO and President of Far East, was quoted as saying that over the past two years the company had invested 35 mln usd on several coal bed methane projects in central Shanxi province and southwestern Yunnan province.
Last month Far East said it has received final approval from the Ministry of Commerce to extend by two years the exploration period for its coal-bed methane production sharing contracts.
The exploration period will be extended until June 30, 2009 for the Shouyan and Qinnan coal bed methane projects in Shanxi.
The exploration period for the Enhong and Laochang coal bed methane projects in Yunnan will also be extended until June 30, 2009.
The 500,00-acre Qinnan Block is near the West-East Pipeline to Shanghai.
Far East explored the areas with partner China United Coalbed Methane Corp, which was set up in 1996 to produce natural gas from coal. China National Petroleum Corp has a 50 pct share in China United Coalbed Methane.
China's reserves of coal-bed methane are estimated at 36 trln cubic meters, similar to the reserve levels for natural gas, according to official data.
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