Far East Energy Announces Spudding Of 15th And 16th Wells of 2013, Preliminary Drilling Results Of Latest Appraisal Well, And Two More Wells Reach Total Depth
HOUSTON, May 16, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC) today announced that production wells 115V and 119V have reached total depth; preliminary gas content has been determined for the SYE03 appraisal well; and two more wells have been commenced since our May 10th release. The newly spudded wells are the SYE-16, a new appraisal well, and the 62-2V, an additional production well, bringing to 16 the number of wells spudded thus far in 2013.
Meanwhile, preliminary results from the testing of core samples from the SYS-03 appraisal well, which is located in the east-to-southeast portion of the Shouyang Block, roughly 27 kilometers southeast of the 1H Pilot Area, indicate gas content for the #15 coal seam of approximately 25 cubic meters per ton or over 800 standard cubic feet per ton. This very high gas content is similar to the high gas content of over 900 scf/ton measured in the SYS-05 well, which is located in the far southeast sector of the Shouyang Block, approximately 37 kilometers south of the 1H pilot Area.
"We are adding new wells at a clip of two to three per week at the moment, now have 13 rigs in the field with more arriving in the next few days, and two additional wells should spud by this weekend," said CEO Michael McElwrath. "I was on the ground in the Block today, and the activity level is remarkable, as is the performance of our team in the field. Twelve wells now await fracing, and commencement of the frac program is imminent. Once the program kicks off, it will likely continue uninterrupted though the early fourth quarter, as new wells reach total depth and join the queue to be fraced."
Alex Yang, Senior Vice President for Exploration commented, "Together with SY-P12, SY-P18, and SYS05, these preliminary results from the SYS-03 indicate that coals of very high gas content cover a vast portion of the eastern Shouyang block. This should be significant in our reserve and resource calculations."
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