HOUSTON, April 2, 2015 /PRNewswire/ -- Far East
Energy Corporation (OTCBB:FEEC), the U.S. listed company
that operates the Shouyang Coalbed Methane (CBM) Production Sharing
Contract (Shouyang PSC) in Shanxi
Province, People's Republic of
China, provides the following operations update in order to
keep the investors informed.
Production and Sales Update
Production volumes from
the Shouyang PSC remained consistent during October, November and
December, 2014 at roughly 1.84 million cubic feet per day (Mcf/d),
as compared to production rates of 1.92 Mcf/d as last reported on
September 15, 2014. As
previously disclosed, management has undertaken intensive efforts
to control and reduce operating and overhead costs, including the
shutting-in of certain wells that were not adding to gas sales, and
this contributes to the reduced production volumes. However,
sales volume remained steady at an average of 1.54 Mcf/d during the
fourth quarter of 2014 compared to 1.54 Mcf/d for the third quarter
of 2014.
Extension of Facility Maturity
The maturity date of
the bridge facility with Standard Chartered Bank (SCB) has been
extended to April 30, 2015, from the
previous maturity date of March 31,
2015.
As the Company is in a blackout period, management will advise
shareholders when appropriate, as developments progress.
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. 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.
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SOURCE Far East Energy Corporation