HOUSTON, Oct. 13, 2014 /PRNewswire/ -- Far East Energy
Corporation (OTCBB:FEEC), the U.S. listed company that
operates the Shouyang Coalbed Methane (CBM) Production Sharing
Contract (PSC) in Shanxi Province,
People's Republic of China, is
pleased to announce the approval of its ODP "Road Pass" for the
Area A section of the Shouyang PSC.
ODP "Road-Pass" Approved
As of September 15, 2014, the Company received
confirmation from its PSC partner, China United Coalbed Methane
Corporation (CUCBM), that the National Energy Administration (NEA),
within the National Development and Reform Commission (NDRC), had
approved the "Road Pass" for the Nanyanzhu section of the Shouyang
PSC. This section covers the A1 core development and
production area in the north section of the Shouyang Block.
This is an important milestone for the Company and for the
Shouyang CBM project. In its approval, the NEA stated that
"This project is a key construction project in the national CBM
industry development planning," underlining the Shouyang Block's
significance in the development of the CBM industry in
China.
Receipt of the "Road Pass" is a major milestone allowing the
Company to proceed with important infrastructure processes and
preparations (including land, grid power, environmental protection
and related preparations) in Area A while awaiting final regulatory
approval.
Area A, which contains most of the Company's proved reserves,
will officially exit the exploration period and commence the
development period when the ODP receives final regulatory approval,
which is expected during 2015.
Commenting, CEO Mike McElwrath
said, "The Company is very pleased with the fast approval of its
CBM ODP 'Road Pass,' which was granted, from submission to
approval, within a few short months, underscoring the importance of
the Shouyang CBM project."
Blackout Period
As previously disclosed, the
Company is in a blackout period. As a result of the ongoing
discussions, the blackout period remains in effect. The
company will update the public as conditions warrant.
Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, 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.