Far East Energy Corporation, the U.S. listed company that operates the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, is pleased to announce a continued rise in gas production from the Shouyang Block since the December 20th release. In addition, the Company also announces that it has entered into an amendment to its existing bridge facility with Standard Chartered Bank extending the maturity date for the facility from January 15, 2014 to April 15, 2014.
Gas production at Shouyang for December 29, 2013 reached 1,569,270 cubic feet per day (1,569 Mcf/d), up 11 percent from the date of the last release on Dec. 20, and up 113 percent from the 738 Mcf/d produced during the week ended November 12.
Commenting, CEO Mike McElwrath said, "The recently completed drilling and fracturing program is proving to be effective in the removal of water in our core area and I am tremendously gratified to see the subsequent rise in gas production. The reservoir response is coming from a combination of our new wells and from older wells, which have responded to the intense de-watering process that our field team has put in place. We are now beginning to see the potential of the Shouyang Block and the production characteristics of a high permeability CBM reservoir."
Continuing, McElwrath said, "In conjunction with the gas price rise already announced for 2014 – when we will be receiving a price of approximately $9.00/Mcf – the higher production figures that we are now seeing should translate into improved sales revenues as we head into 2014. And, in that regard, we remain very active in the field having tied 15 wells into the gathering and sales system in the last 14 days, with another seven wells scheduled to be tied in over the next 10 days."
Standard Chartered Bank Bridge Facility Extension
Far East Energy Corporation today announced that it has entered into an amendment to its bridge facility agreement with Standard Chartered Bank that extends the maturity date from January 15, 2014 to April 15, 2014 and requires that interest be paid on a monthly basis rather than a quarterly basis.
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