HOUSTON, March 13, 2014 /PRNewswire/ -- 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,
confirms an ongoing increase in gas production from the Shouyang
Block. Submission of the draft Overall Development Plan (ODP)
for the core production area at Shouyang is also expected in the
near future.
Management is pleased to announce that, as of March 11th, production had reached 2,256,466
cubic feet per day (2,256 Mcf/d), following a period of expected
steady production growth.
This is up 11% from the production figure released February 12th, and is over 3 times higher than
the average 738 Mcf/d produced for the week ending November 12, 2013. Water production for
March 11th was 3,763 barrels per day,
compared to 3,414 barrels of water per day on November 12, 2013.
Commenting, CEO Michael McElwrath
said, "We continue to take a conservative approach to the rate of
increase of production from Shouyang and are gradually allowing gas
production to rise, while optimizing continued water production – a
classic approach to CBM production; and thus we are very pleased
that we have nevertheless seen a tripling in gas production in the
past 4 months."
In addition, following completion of the key documentation by
FEEC, management expects the draft ODP for the acreage encompassing
the 1H Production Area to be submitted to the National Development
and Reform Commission (NDRC) within a matter of weeks. This
would be the prelude to the award of a "Road Pass" ODP potentially
by as early as mid-summer, prior to eventual formal ODP
approval.
McElwrath continued, "We look forward to completion of the ODP
process, but would also note that we have been producing and
selling gas on a pre-ODP basis since 2011 and are already seeing
the combined benefits of higher gas production and approximately
$9/Mcf gas price that we are now
receiving."
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.