Far East Energy Announces Amendment To Bridge Facility Agreement
HOUSTON, May 23, 2012 /PRNewswire/ — Far East Energy Corporation (OTCBB:FEEC) today announced that it had entered into an amendment to its bridge facility agreement with Standard Chartered Bank that, among other things, extends the date upon which the company is required to provide Standard Chartered Bank with evidence of approval by the Ministry of Commerce, the governmental ministry of The People’s Republic of China, of the extension of the company’s Shouyang Production Sharing Contract (PSC) in Shanxi Province, Qinshui Basin. The amendment extends the deadline from May 30, 2012 to August 28, 2012. Before June 30, 2012, the company must provide Standard Chartered Bank a satisfactory update from China United Coalbed Methane Corporation of the status of the approval of the extension of the PSC.
Commenting on the amendment, Michael R. McElwrath, CEO and President of Far East Energy, stated: “We believe that this extension provides us with runway to continue to work with China United Coalbed Methane Corporation (CUCBM), our Chinese partner, in securing the final regulatory approval of the extension of our Shouyang PSC and that we are gratified by the level of effort put forth by CUCBM through this process.”
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. For additional information please visit, www.fareastenergy.com.
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 program 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 (“CUCBM”), 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; the Chinese Ministry of Commerce (“MofCom”) may not approve the Modification Agreement to the Shouyang PSC (the “Modification Agreement”) on a timely basis or at all, or, if so, on commercially advantageous terms; the MofCom’s failure to approve the extension of the Modification Agreement by August 30, 2012 could limit our ability to borrow additional amounts under the credit facility absent a waiver from Standard Chartered; the MofCom’s failure to approve the extension of the Modification Agreement by August 30, 2012 could result in the early termination of the credit facility and require immediate repayment of all outstanding amounts thereunder; our inability to comply with certain quarterly financial covenants, periodic information requirements (including periodic updates on strategic transactions, refinancing plans and the status of MofCom approval), satisfy certain continuing representations, or remedy a material adverse effect to our business or to certain other conditions could result in an early termination of the credit facility and require immediate repayment of all outstanding amounts thereunder; our Chinese partner companies or the MofCom may require certain changes to the terms and conditions of the Modification Agreement or our PSCs in conjunction with their approval, including reductions in acreage or a reduction in the term of the extension for the exploration period; 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 the listing of 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. Statements contained in this presentation speak only as of the date hereof. We assume no obligation to update any of these statements.
SOURCE Far East Energy Corporation