DGAP-News: Far East Energy Announces Spudding of 9 New Wells, 8 More Wells Reach Total Depth, 15 Wells Fraced, 29 Rigs Now in Field
(firmenpresse) - Far East Energy Corporation
18.07.2013 15:00
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HOUSTON, 2013-07-18 15:00 CEST (GLOBE NEWSWIRE) --
Far East Energy Corporation (OTCBB:FEEC) today announced that 9 new wells have
commenced drilling in the 21 days since the last 2013 drilling program update
release issued on Thursday, June 27, bringing to 52 the total number of wells
spudded in 2013. Additionally 8 more wells reached total depth, and 15 wells
have now been fraced as Far East approaches the halfway point in the first of
its planned 2013 frac campaigns. Currently there are 29 rigs in the field.
CEO Michael R. McElwrath commented, 'Twenty-nine rigs, several wells spudded
per week - this is a remarkable level of drilling activity. Three of the 8
wells that recently reached total depth did so within 12 days from their
commencement - very efficient indeed. And the real rewards come from fracing
and tying wells into the gathering system. The 15 fracs have gone off well, and
5 wells are being tied into the gathering system now, with 6 more to be tied in
shortly. Another 20 wells are planned to be fraced in this campaign, the first
of at least two major frac campaigns planned for the year.'
Of the 52 wells commenced by FEEC in 2013, 25 are production wells and 20 of
those production wells have reached total depth, with 12 of those 20 having
been fraced as of July 17. Another well is scheduled to be fraced today.
McElwrath continued, 'We are fracing at a rate of almost 1 well per day,
perhaps 3 wells every 4 days. We anticipate major increases in water production
as these fracs kick in, which should then be followed by gas when sufficient
de-pressuring has occurred. We look forward to results and will discuss this in
more detail as results become available. In the meantime, we will continue our
regular drilling and fracing updates; and again pay tribute to the team in
China for a truly outstanding field operations performance that compares
favorably to the best of CBM operations worldwide.'
As previously announced, effective July 10, city gate gas prices in China
increased by an average of 15% across the country following action by the
National Development and Reform Commission, China's top policy-making body,
with analysts projecting that this will translate into an increase of
approximately 25% at the wellhead.
'The gas price increases, which analysts predict may result in an uptick of as
much as 25% in wellhead prices, combined with potential tripling of the CBM
subsidy from .2 RMB per cubic meter to .6 RMB per cubic meter, could translate
to a potential increase in the gas sales price of between 45% and 50% when
implemented. This and recent announcements underlining the industry's continued
strong interest in China's CBM assets put Far East in a solid position as we
continue executing the largest and most strategic drilling program of the
Company's history,' said Jennifer Whitley, CFO of Far East.
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 EastEnergy 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.
CONTACT: Investor Relations - 281-606-1600
Far East Energy Corporation
Jennifer Whitley - 832-598-0470
Far East Energy Corporation
Catherine Gay - 832-598-0470
Far East Energy Corporation
News Source: NASDAQ OMX
18.07.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Far East Energy Corporation
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US3073251007
WKN:
End of Announcement DGAP News-Service
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Themen in dieser Pressemitteilung:
far-east-energy-announces-spudding-of-9-new-wells
8-more-wells-reach-total-depth
15-wells-fraced
29-rigs-now-in-field
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Datum: 18.07.2013 - 15:00 Uhr
Sprache: Deutsch
News-ID 279729
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