HOUSTON, May 6, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC) today announced the following coalbed methane (CBM) drilling progress on its Shouyang Block, located in Shanxi Province, Peoples Republic of China (PRC).
A summary of the key developments through May 5, 2013 includes:
- Wells spudded in 2013: 13 (7 production wells and 6 appraisal wells)
- Wells that have reached total depth in 2013: 4 (3 production wells and 1 appraisal well, with 1 of these spudded in 2012)
- Wells drilling at present: 10 (4 production wells and 6 appraisal wells)
- Wells in line for fracturing: 10 (9 production wells and 1 appraisal well; fracing program planned for May/June)
- Well locations where pads have recently been constructed or are under construction prior to rigging up: 9
- In addition, the company has completed its review of requested technical analyses commissioned from third party engineering firms to ascertain both optimal drilling locations for this year's drilling program, as well as optimal frac designs. Results are being incorporated in the drilling and completion program.
Rapid Progress of Program
Since the last Operations Update call on April 18, 2013, the number of wells being drilled has increased from five to ten wells, and two of the five wells that were drilling 17 days ago have now reached total depth and finished drilling. The two rigs that were drilling these recently completed wells have moved or are now moving to new locations; and thus twelve rigs will soon be drilling (10 drilling now, plus these 2 existing rigs moved/moving to new locations), representing an increase of seven rigs over and above the five rigs that were drilling on April 18. Additionally, new pads for drilling are being constructed on a continuous basis, with nine either currently awaiting rigs, or being completed, and more to be commenced in the near future. It is believed that nine additional rigs will be drilling in the next 15 days, bringing the total at that time to twenty-one.
"The 2013 Drilling program is close to hitting full stride now, after a deliberate slowing of the early pace to allow time for both internal and external analysis to optimize well location, frac design, cementing process and quality, and well spacing," commented Mike McElwrath, President and CEO of Far East Energy. "We are drilling at a more rapid pace than ever before, with the advantage of more data and analysis than heretofore available, and currently target drilling approximately 70 new production wells this year and 25 or more appraisal wells."
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.
SOURCE Far East Energy Corporation