- Far East Energy announces spudding of 30th well of 2013 at Shouyang; speaking on CNBC Asia CEO Mike McElwrath says that CBM is the precursor to shale in China; he will also be present at the Standard Chartered Bank Earth's Resources conference in Hong Kong next week.
HOUSTON, June 14, 2013 /PRNewswire/ -- Far East Energy Corporation(OTCBB:FEEC) the US listed company that operates the Shouyang PSC in Shanxi Province, People's Republic of China, today announced that 7 new wells have commenced in the 17 days since the last 2013 drilling program update release issued on Tuesday, May 28, bringing to 30 the number of wells spudded in 2013. They are production wells 128D, 62-3D, and 81-4D, as well as appraisal/exploration wells SYE-05, SYE-14, SYS02-1D, and SYW-14. Additionally 6 wells reached total depth (TD) in the past 17 days. These are the SYW-08, SYE-16, SYW-11 appraisal/exploration wells, and the 62-4D, 81-3D, and 165D production wells.
These are further production/appraisal wells in the 1656 square kilometers block, designed to continue the dewatering process in the 1H Pilot Area and to continue the process of establishing the extent of the high permeability, high gas content coals across the 40km x 40km Shouyang Block.
Commenting, CEO Mike McElwrath said, "We now have 25 rigs working in the field, the greatest number in our history and a significant number for any company. This level of activity takes us closer to the point at which we hit the critical number of production wells in our core production area."
Speaking on CNBC Asia this week in Hong Kong, McElwrath underlined the importance of the Shouyang project to China's energy needs, saying, "Significant shale gas production is likely a decade or more away in China, but CBM is here now and I believe CBM will be the forerunner to shale gas production, providing a major source of gas for China."
He went on to say, "The high permeability discovery in our Shouyang Block project, has attracted a great deal of attention and several off-take pipelines are built directly to or through our production area; and, with the opportunities that are opening up, I believe Far East is extremely well positioned for a breakthrough year. With the increased deregulation of gas in China, along with increased market pricing, I believe that FEEC will be a leader in the CBM industry in China."
Please follow the link below for the full interview.
http://video.cnbc.com/gallery/?video=3000175084&play=1
Prior to heading back to the operations team in Beijing, Mr. McElwrath will be spending further time in Hong Kong next week, meeting with investors and being present at the Standard Chartered Bank Earth's Resources conference, now seen as the pre-eminent resources-focused conference in Asia and, FEEC is pleased to be present for the third year running.
The conference provides FEEC with a further excellent opportunity to showcase the strengths of the company's Shouyang CBM project in Shanxi Province, PRC and the progress made on its production and appraisal well drilling program so far in 2013.
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.