HOUSTON, March 16, 2011 /PRNewswire/ -- Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today that it has closed its registered direct offering in which it sold 34,880,599 shares of common stock at $0.5025 per share for anticipated aggregate gross proceeds of $17,527,500. As of March 15, 2011, Far East Energy had received $16,527,500 of said proceeds with the final $1,000,000 anticipated to be received before close of business on March 16, 2011.
"We were recently presented with the opportunity by Religare Capital Markets, Inc to receive capital primarily from a few excellent Hong Kong and Singapore based funds," said Michael R. McElwrath, CEO and President. He continued, "Simultaneously with this, we were presented with the opportunity to pursue what could be a very large Overall Development Plan (ODP) at Shouyang and with a suggestion that we expand our activities across the block."
"The basic opportunity is to accelerate drilling of approximately 10 Pilot Development Test wells that will cover the far reaches of the Shouyang Block and also to possibly drill two 5-well clusters. The five-well clusters or "5-spots" may aid in the establishment of additional Chinese reserves for ODP purposes and perhaps establish additional pilot production areas within our ongoing Pilot Development Work Program. The net proceeds from this placement allow us to undertake these accelerated operations activities."
Religare Capital Markets, Inc acted as Far East's placement agent in connection with the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction or to any person in which or to whom such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the SEC's website at www.sec.gov or from Religare Capital Markets, Inc., 40 West 57th Street 20th Floor, New York, NY 10019.
Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, Kunming, 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, 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: there can be no assurance as to the volume of gas that is ultimately produced or sold from our wells; 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, Ltd., to which we are an express beneficiary; 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; certain of the proposed transactions with Dart Energy (formerly Arrow Energy) may not close on a timely basis or at all, including due to a failure to satisfy closing conditions or otherwise; the anticipated benefits to us of the transactions with Dart Energy may not be realized; the final amounts received by us from Dart Energy may be different than anticipated; Dart Energy may exercise its right to terminate the Farmout Agreement at any time; the Chinese Ministry of Commerce ("MOC") may not approve the extension of the Qinnan PSC on a timely basis or at all; our Chinese partner companies or the MOC may require certain changes to the terms and conditions of our PSC in conjunction with their approval of any extension of the Qinnan PSC; 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; 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 2009 Annual Report and subsequent filings with the Securities and Exchange Commission
SOURCE Far East Energy Corporation