HOUSTON, Dec. 31, 2013 /CNW/ - Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, is pleased to announce a continued rise in gas production from the Shouyang Block since the December 20th release. In addition, the Company also announces that it has entered into an amendment to its existing bridge facility with Standard Chartered Bank extending the maturity date for the facility from January 15, 2014 to April 15, 2014.
Gas production at Shouyang for December 29, 2013 reached 1,569,270 cubic feet per day (1,569 Mcf/d), up 11% from the date of the last release on December 20, 2013, and up 113% from the 738 Mcf/d produced during the week ended November 12, 2013.
Commenting, CEO Mike McElwrath said, "The recently completed drilling and fracturing program is proving to be effective in the removal of water in our core area and I am tremendously gratified to see the subsequent rise in gas production. The reservoir response is coming from a combination of our new wells and from older wells, which have responded to the intense de-watering process that our field team has put in place. We are now beginning to see the potential of the Shouyang Block and the production characteristics of a high permeability CBM reservoir."
Continuing, McElwrath said, "In conjunction with the gas price rise already announced for 2014 – when we will be receiving a price of approximately $9.00/Mcf – the higher production figures that we are now seeing should translate into improved sales revenues as we head into 2014. And, in that regard, we remain very active in the field having tied 15 wells into the gathering and sales system in the last 14 days, with another seven wells scheduled to be tied in over the next 10 days."
Standard Chartered Bank Bridge Facility Extension
Far East Energy Corporation today announced that it has entered into an amendment to its bridge facility agreement with Standard Chartered Bank that extends the maturity date from January 15, 2014 to April 15, 2014 and requires that interest be paid on a monthly basis rather than a quarterly basis.
Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, and Taiyuan City, 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, including that the amendment to the PSC may not be entered into or if entered into may not be on the same terms as originally agreed upon by the parties. 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 - +1-281-606-1600, OR Jennifer Whitley - +1-832-598-0470, OR Catherine Gay - +1-832-598-0470, all of Far East Energy Corporation