HOUSTON, May 28, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB: FEEC) today announced that 7 new wells have been commenced in the 12 days since the last 2013 drilling program update release issued on Thursday, May 16, bringing to 23 the number of wells spudded in 2013. They are production wells 62-4D, 81-1D, 81-2D, 81-3D, and 165D and appraisal/exploration wells SYSE-09 and SYE-09. Additionally five wells reached total depth (TD) in the past 12 days. These are the 62-2V, 62-1D and 104D production wells, as well as the SYW-13 and SYW-09 appraisal wells. The Company noted that the 62-2V was drilled in only 12 days.
"On the 16th, we had 13 rigs in the field; now we have 18 rigs in the field with 4 more en-route," said CEO Michael McElwrath. "We have spudded 7 new wells in the past 12 days – a testament to our entire team on the ground and their hard work."
Meanwhile, the Company's 2013 frac campaign has commenced, with 16 wells now ready to be fracture stimulated, 13 of which are production wells and 3 of which are appraisal wells.
Bob Hockert, Far East Energy China Country Manager commented, "We are excited the frac program is underway. A little over a week ago, our team had 12 wells ready to frac, and that number has now moved up to 16. By the time these 16 wells are stimulated, another 10 wells will be in the queue for fracing. Our goal is to continue the frac program uninterrupted until late October or November, ultimately comprising approximately 100 wells."
Hockert continued, "We have beefed up our capabilities in the field, adding 14 field personnel, including 5 drilling supervisors, a completions engineer, and several landmen. Additionally, a GIS mapping specialist and Land Manager have been added in Beijing. The results are reflected in the ability to spud 7 wells in 12 days."
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