HOUSTON, Aug. 8, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), which operates the Shouyang coalbed methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, is pleased to update the market on recent drilling and fracing activities.
Far East Energy is progressing though a robust drilling and development program for the 2013 work year and as of July 31, 2013, a total of 53 wells have been spudded since January 1. As of July 31, 2013, 26 wells have been fraced (23 wells in the 1H Pilot Area and 3 appraisal wells) and 7 wells are waiting to be fraced. In addition, 4 wells are in the early stages of the dewatering process, are pumping and producing water from the #15 coal seam. Additional groups of wells are in the process of having surface facilities installed to commence pumping operations. After reaching a peak of 31 drilling rigs in late June, 25 rigs remain in the field focused on the drilling of additional production wells.
Commenting, CEO Michael McElwrath said, "We are pleased with the progress of our 2013 drilling program and with the efficiencies we are seeing in field operations managing the program. Our focus is now on adding production wells for dewatering and gas production, and it is gratifying to see a real well pattern filling in so rapidly with 25 rigs masterfully managed. As for results, we are encouraged with the initial rates of water production from our core production area, which is essential to the dewatering process. We also just received positive preliminary gas content results from 18 of our recently drilled appraisal wells."
Of the 53 wells spudded in 2013, 27 are appraisal wells that continue to confirm the lateral extension of the #15 seam throughout the company's block and defining the real extent of the #9 and #3 coal seams. The appraisal program includes core retrieval and evaluation, pressure testing, mud logging and sample collection. The 18 appraisal wells undergoing testing reveal excellent preliminary gas content averaging 500 scf/ton.
Continuing, McElwrath said, "We are very encouraged with the initial laboratory reports for gas content and saturation levels, which seem to confirm that virtually the entirety of our block is blessed with very high gas content. This information will be fed into future reserve and resource estimates."
Additionally, Far East Energy today announced that it has filed its Quarterly Report on Form 10-Q for the period ending June 30, 2013, which is available on the SEC's website at www.sec.gov and on the company's website at www.fareastenergy.com under the tab "Investor Relations" in the "SEC Filings" section.
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. 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.
