HOUSTON, June 3, 2015 /PRNewswire/ -- Far East
Energy Corporation (OTC: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 updates.
Production and Sales Update
Production volumes for the
Shouyang PSC during the first quarter of 2015 were approximately
1.69 million cubic feet per day (MMcf/d), compared to
production rates for the fourth quarter of 2014 of roughly 1.84
MMcf/d as last reported on April 2,
2015. As previously reported, management has undertaken broad
cost control efforts to effectively manage operating and overhead
costs; including, but not limited to, the shutting-in of certain
wells, resulting in the somewhat reduced production volumes.
However, gas sales operations have continued, and are continuing
uninterrupted, with consistent gas sales volumes reported
quarter-to-quarter. Sales volumes for the first quarter of
2015 remained constant with an average of 1.53 MMcf/d compared to
sales volumes of 1.54 MMcf/d for the fourth quarter of 2014,
further underscoring the quality of the Shouyang Block.
Blackout Period Update
As reported earlier, FEEC
management, along with its advisors, have been in an ongoing
strategic process in which multiple interested parties expressed
interest in strategic arrangements including, but not limited to,
joint ventures, farm-ins, and an outright sale of the Company.
Several of these interested parties engaged in lengthy due
diligence processes and discussions with Company
management.
Because these strategic discussions are currently ongoing, the
blackout period remains effective. Management is mindful of
all the Company's shareholders and stakeholders, and their
respective interests, as it continues to diligently pursue the best
possible outcome for all. Management will inform the market
as it is able.
Debt Maturity Extensions
The maturity date of the
$1.4 Million Term Loan Facility
Agreement (TLFA) with the lenders party thereto, has been extended
to June 26, 2015 from its previous
maturity date of May 26, 2015.
The maturity date of the Facility Agreement with SCB has been
extended to July 3, 2015 from its
previous maturity date of June 1,
2015.
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