HOUSTON, June 29, 2015 /CNW/ --Far East Energy Corporation (OTC:FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, today announces that Far East Energy (Bermuda), Ltd. (FEEB), a wholly owned subsidiary of Far East Energy Corporation (the "Company"), has entered into a $4 Million Term Loan Facility Agreement (TLFA), effective June 26, 2015, with the lenders party thereto; and, further announces that an extension of the maturity date of the existing $1.4 Million Original Term Loan Facility Agreement (OTLFA) that FEEB entered into on February 24, 2015 with the lenders party thereto.
The new TLFA matures on October 8, 2015 and provides for an aggregate principal amount of $4 Million to be borrowed, subject to the terms, conditions and repayment obligations of the TLFA. No stock, warrants or other equity securities will be issued to the lenders in connection with the TLFA. Net proceeds from the TLFA will be utilized for certain working capital purposes as required by the TLFA. The majority of the net proceeds are targeted to cover certain operational expenses and payables as the Company continues to work through strategic discussions.
Further, the maturity date of the $1.4 Million OTLFA has been extended to July 27, 2015 from its previous maturity date of June 26, 2015.
Far East Energy Corporation will continue to advise its shareholders at appropriate times, and with appropriate details, as developments progress.
Far East Energy Corporation
Based in Houston, Texas, with an office in Beijing, China, Far East Energy Corporation is focused on coalbed methane exploration and development in China.
Statements contained in this press release that state the intentions, hopes, estimates, beliefs, anticipations, expectations or predictions of the future of Far East Energy Corporation and its management are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the preliminary nature of well data, including permeability and gas content; there can be no assurance as to the volume of gas that is ultimately produced or sold from our wells; the fracture stimulation and drilling programs may not be successful in increasing gas volumes; due to limitations under Chinese law, we may have only limited rights to enforce the gas sales agreement between Shanxi Province Guoxin Energy Development Group Limited and China United Coalbed Methane Corporation, to which we are an express beneficiary; additional wells may not be drilled, or if drilled may not be timely; additional pipelines and gathering systems needed to transport our gas may not be constructed, or if constructed may not be timely, or their routes may differ from those anticipated; the pipeline and local distribution/compressed natural gas companies may decline to purchase or take our gas, or we may not be able to enforce our rights under definitive agreements with pipelines; conflicts with coal mining operations or coordination of our exploration and production activities with mining activities could adversely impact or add significant costs to our operations; our lack of operating history; limited and potentially inadequate management of our cash resources; risk and uncertainties associated with exploration, development and production of coalbed methane; our inability to extract or sell all or a substantial portion of our reserves and other resources; we may not satisfy requirements for listing our securities on a securities exchange; expropriation and other risks associated with foreign operations; disruptions in capital markets affecting fundraising; matters affecting the energy industry generally; lack of availability of oil and gas field goods and services; environmental risks; drilling and production risks; changes in laws or regulations affecting our operations, as well as other risks described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission.
SOURCE Far East Energy Corporation
For further information: Investor Relations - 281-606-1600, Far East Energy Corporation