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.
