Far East Energy Provides China Operations Update
Far East Energy Corporation (OTC BB: FEEC) issued an update on its China operations indicating that it continues to dewater its FCC HZ01 well in the Shouyang Block of the Shanxi Project. The well is producing 600 barrels of water per day and the water level is dropping. The early gas indicated is not yet sufficient to be able to project the production volume of the well.
The # 15 coal seam in the FCC HZ01 well is at a depth of approximately 540 meters (1770 feet) while the current water level is at 365 meters (1197 feet). Dewatering is important to coalbed methane (CBM) production because as water is removed from the coal seam, the decreasing pressure allows the CBM gas to potentially flow.
Far East Energy also announced that it is continuing its drilling operations on its second horizontal well (FCC HZ02) in the Shouyang Block of the Shanxi Project with China United Coalbed Methane, Ltd. (CUCBM) which began in December 2005. The Shouyang Block is part of the 4,280 square kilometer (1,057,650 acres) coalbed methane (CBM) project in Shanxi Province that Far East holds under farmouts from ConocoPhillips.
Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan City, China, Far East Energy Corporation is focused on the acquisition of, and exploration for, coalbed methane through its agreements with ConocoPhillips and China United Coalbed Methane Company, Ltd. (CUCBM).
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 1993, 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: our lack of operating history; limited and potentially inadequate cash resources; risk and uncertainties associated with exploration, development and production of oil and gas; expropriation and other risks associated with foreign operations; matters affecting the oil and gas 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 and subsequent filings with the Securities and Exchange Commission.
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SOURCE: Far East Energy