HOUSTON, Sept. 30, 2013 /CNW/ - Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Block coalbed methane (CBM) Production Sharing Contract in Shanxi Province, Peoples Republic of China, in partnership with China United Coalbed Methane Co., Ltd., is pleased to announced the latest results of its intensive 2013 drilling program.
Since early June when the first group of wells were fraced, weekly water production across the Shouyang Block 1H core production area has risen 54%. This increase in field water production results from the first 26 wells fraced and placed on pump in 2103. An additional 8 wells will soon be placed on pump, which will further add to the water production.
Commenting, CEO Michael R. McElwrath said, "We are exceptionally pleased to register such a strong rise in water production on the basis of the first 26 of our recently fraced wells being placed on pump across the past few months. This increase in water production, coming as it does from only 26 wells, clearly indicates the effectiveness of our new fracs, and we look forward to seeing how the next group of wells will further contribute to the dewatering of the field. Historically, this is exactly what we should expect to see from a high-permeability, high gas content CBM project. As new wells continue to come on-stream, and water production continues to increase, sufficiently de-pressurizing the seam, the high levels of CBM gas contained in the seam should be released and produced."
Appraisal Wells Reveal 10 Meter Coal Seam Thickness
As the Company continues to analyze the results of the appraisal well drilling program, in the southern and eastern sections of the Shouyang Block, recent appraisal wells have revealed coal seam thickness as high as 10.3 meters in the target #15 coal seam, which compares to previously known ranges of 3-5 meters of thickness.
McElwrath continued, "These recent appraisal well results further confirm the world-class nature of the Shouyang Block, as evidence of these thicker coals in the southeastern portion of Shouyang, coupled with high gas content, indicates excellent production potential. We hope to see this new data provide added uplift to our gas resources, and ultimately, to our valuation."
Update Conference Call Announced
Far East will host a conference call to update shareholders and other interested parties on Tuesday, October 8, 2013, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Robert Hockert, China Country Manager, and Huw Williams, Director of Asian Investor Relations, will discuss the 2013 drilling and operations program.
Conference Call Details
Conference call details will be announced shortly and will be posted on the Company's website at www.fareastenergy.com.
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. 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:
Far East Energy Corporation, Investor Relations, +1-281-606-1600, or Jennifer Whitley, +1-832-598-0470, or Catherine Gay, +1-832-598-0470