HOUSTON, Jan. 7, 2014 /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, announces a continued rise in gas production from the Shouyang Block since the latest release issued December 31, 2013.
Following the December 31st announcement that the bridge facility with Standard Chartered Bank has been amended to extend the facility's maturity date to April 15, 2014, and that gas production at Shouyang had reached 1,569,270 cubic feet per day (1,569 Mcf/d), the Company is pleased to announce that as of January 6, 2014, production from the Shouyang Block has reached 1,676,518 cubic feet per day (1,677 Mcf/d).
This is up a further 7% from the production figure released on December 31, 2013 and up 127% from the 738 Mcf/d produced in the week ending November 12, 2013. Production growth continues to be seen from both new and older wells.
Commenting, CEO Mike McElwrath said, "Since early November, we have seen gas production increase by almost 130%. This rapid and steady rise in production could not have come at a better time as our gas price, inclusive of current subsidies, has increased to RMB 1.95/m3, equivalent to US$9.12/Mcf, on January 1, 2014 and SCB extended its facility on December 31, 2013. As a result, we enter the new year riding a wave of good news, well-positioned to accomplish our strategic goals."
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
Far East Energy Corporation, Investor Relations, 281-606-1600, or Jennifer Whitley, 832-598-0470, or Catherine Gay, 832-598-0470