HOUSTON, Oct. 30, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), Operator of the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, today announced that an additional 21 wells have been commenced since July 31, bringing to 74 the total number of wells spudded in 2013. Additionally, 32 additional wells have been fraced since July 31, bringing to 58 the number of wells fraced in 2013. Of the 74 wells that have been spudded thus far in the 2013 drilling program, 47 are new production wells in the core 1H Production Area, and 27 are appraisal wells which have confirmed the lateral extension of the high-permeability and high gas content #15 coal seam across the Shouyang Block.
More importantly, in terms of making progress towards significant gas production from Shouyang, as of October 29, of the 58 wells fraced this year, 51 have been production wells in the 1H Production Area, including 28 fraced since the end of July 2013. In addition, 7 appraisal wells have been fraced this year, including 4 since July 31. Twelve further wells are scheduled to be fraced over the next two to three weeks, ten of which are production wells.
Commenting, CEO Michael McElwrath said, "The 2013 drilling program has already more than doubled that of any prior year in terms of wells spudded and will soon more than double the number of production wells fraced in any previous year. But the true measure lies in water produced as we strive to reach critical desorption pressure (CDP) across a broad area thereby achieving a meaningful gas saturation and attendant gas production. And since mid-June when the first new wells began pumping, water production in the 1H Production Area has increased by 80 to 85% while the number of wells on pump to date has increased by approximately 30% and CDP is now beginning to be achieved in a number of discrete areas."
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