HOUSTON, Oct. 30, 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 a further extension of the maturity date of its
existing Facility Agreement with Standard Chartered Bank (SCB).
The maturity date of the Facility Agreement with SCB has been
extended to December 5, 2014, from
the previous maturity date of October 31,
2014.
Commenting, CFO Jennifer Whitley
said, "This further extension underlines SCB's continued support
for the company, as management continues its ongoing strategic
discussions with various third parties."
Far East Energy Corporation (FEEC) will continue to advise its
shareholders at appropriate times as developments progress.
New Gas Facility Completed Adjacent to FEEC's Gas Sales
Compressor Station
The construction of a large scale gas
consuming facility adjacent to FEEC's final compressor station has
now been completed and put into operation. The complex
comprises a combined cycle power plant, and an LNG plant, designed
to use CBM as a gas supply. Additionally, the complex can
also supply vehicles with CNG.
The power plant is the largest peak load provider in
Shanxi Province and was completed
in just under two years, highlighting Shanxi Province's commitment to improving its
environment by utilizing more natural gas and less coal in its
energy mix. The facility has the ability to consume up to
1/Bnm3 (Billion cubic meters) of natural gas per year, ensuring a
strong future demand for CBM gas in the Shouyang area. Gas
from FEEC's Shouyang project is already being dispatched to this
new facility.
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.