HOUSTON, June 27, 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 13 new wells have commenced in the 13 days since the last 2013 drilling program update release issued on Friday, June 14, bringing to 43 the number of wells spudded in 2013. Additionally, 4 wells reached total depth, and the 2013 frac program is well underway. Currently there are 30 rigs in the field.
CEO Michael R. McElwrath commented, "We now have 30 rigs in the field, substantially exceeding our announced target of 25, and have spudded wells at a rate equivalent to 1 well per day over the past two weeks. This is a level of activity that is unmatched by our peers in China and for which our team in the field, led by our two General Managers of Field Operations, Brent Lowson and Matt Murphy, deserve high praise."
The company also announced that preliminary results from the SYSE-09 appraisal well located in the far southeast corner of the block and more than 35 kilometers distant from the company's 1-H production Area, reveal a very thick number 15 coal seam of over 10 meters in thickness, with exceptionally high preliminary gas content readings. The well was completed to a depth of 1388 meters or 4554 feet.
Alex Yang, Senior Vice President for Exploration commented, "These results continue to indicate that the entire eastern half of the Shouyang block has coals of excellent thickness and high gas content representing an exceptional target for development of future production areas as well as reserves creation."
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