HOUSTON, Dec. 20, 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, today announced an 22% increase in its gas production since the Company's last update on production volumes on Monday, December 16, 2013.
Updating its announcement of December 16th that gas production had increased to 1,157,967 cubic feet per day (1,158Mcf/d) as of December 15th, the Company announced that production for December 19th in China was 1,412,744 cubic feet per day (1,413 Mcf/d). This represents an approximate 22% increase in the past four days and represents an approximate 91% increase over average production for the week ended November 12, 2013, during which production was 738 Mcf/d as announced on December 12th.
The Company also announced that the increase in the rate of field water production has continued to outstrip the increase in the well count, signifying that the field's dewatering efforts from new wells are continuing to have a synergistic effect on the total dewatering process. As of December 17th total field water production has increased 133% while the number of producing wells has increased 59% compared to the water production and well count respectively in mid-June when the first wells from this year's drilling program began pumping.
Commenting, CEO Mike McElwrath said, "We are very pleased to see that all of the hard work of this year is now bearing fruit in the form of strongly rising gas production. Indeed, today's production is by far the highest single day production ever from Shouyang; and, coupled with the recent increase in our contracted gas price and the one year extension of the Area B exploration acreage of our Block, we are very optimistic about the potential of the Shouyang Project as we head into 2014."
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 - 281-606-1600, Far East Energy Corporation; Jennifer Whitley - 832-598-0470, Far East Energy Corporation; Catherine Gay - 832-598-0470, Far East Energy Corporation