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Far East Energy (FEEC)

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Last Post: 4/15/2014 11:46:01 PM - Followers: 74 - Board type: Free - Posts Today: 0

FAR EAST ENERGY -- The third-largest concession holder of coalbed methane deposits in China. The company will develop the resources together with its local joint-venture partner, the state-owned China United Coalbed Methane Company, Ltd.

June Presentation.

Far East Releases Independent Engineer
Far East Energy Corporation (OTCBB:FEEC) today released the results of an independent coalbed methane reservoir simulation study conducted over the past four months by Advanced Resources International, Inc. ("ARI"), of Houston, Texas, for the Shouyang Block, Qinshui Basin, Shanxi Province, China. The report concludes that "based upon model predictions of reservoir pressure, dewatering of the #15 coal seam has been occurring and is approaching the estimated desorption pressure within the pilot area." The desorption pressure is the point at which pressure is lowered sufficiently for gas to be released from the coal matrix.

The report also indicates the potential for favorable gas recoveries from either vertical or horizontal wells. Using standardized assumptions of gas recoveries over 20 years at the median case (50% probability), ARI's simulations show recoveries of 3.4 to 5.3 billion cubic feet (Bcf) from horizontal wells spaced at 250 and 550 acres, respectively. Using the same assumptions, the report estimates gas recoveries from individual vertical wells of .5 to 1.2 Bcf per well based on wells spaced at 40 and 160 acres, respectively. These recoveries are for simulated wells and are not necessarily indicative of actual results to be expected from the Company's existing wells, many of which suffered formation damage during drilling operations.

ARI's simulations show theoretical peak gas production rates of between 2.3 and 5 million cubic feet per day (MMcfd) for a 900-meter long horizontal well drilled on 400-acre spacing. These rates are also above the projected gas production rates of 1 to 2 MMcfd projected for future horizontal wells by Netherland Sewell in June 2007. The ARI data includes information gathered from additional wells drilled subsequent to the Netherland Sewell report. The ARI simulations show peak production rates of .3 to .5 MMcfd from vertical wells drilled on 80-acre spacing.

"This is great news," said Michael R. McElwrath, CEO and President of Far East. "We certainly hope we are approaching the estimated desorption pressure, and the potential values for both peak daily production per well and for ultimate gas recovery per well indicate significant upside for the project. We are gratified that this four-month long analysis by ARI, which is based upon the data from new wells and upon much more information than was available to Netherland Sewell, has resulted in an optimistic analysis." The ARI simulations also continue to reflect high permeability ranging from 80 to 120 millidarcies, and very high gas content of approximately 500 standard cubic feet (scf) per ton. As Netherland Sewell previously noted, "CBM reservoirs with higher permeability have the ability to outperform CBM reservoirs with lower permeability if the coal can be adequately dewatered. Higher permeability allows wells to maintain their production rates for longer time periods enabling higher gas recoveries from wider spaced wells in shorter periods of time." The full text of the Advanced Resources International, Inc., report, which contains further information and qualifications, may be found on the website of Far East Energy at

Advanced Resources International (ARI) is a research and consulting firm providing services related to unconventional gas (coalbed methane - CBM, gas shales, tight sands), enhanced oil recovery (EOR), and carbon sequestration (CO2 sequestration).

ARI's services bring together depth of experience, industry insights and analytic capabilities for the benefit of our worldwide clientele. Our clients include major, independent and national oil and gas companies, coal producers and utilities, technology and service providers, legal and financial firms, research organizations, consortia and academia, policy groups, and governments.

Our team of geoscientists, engineers, and business and policy analysts provide services that include geologic and engineering studies, project feasibility studies, pilot project implementation and management, strategic planning and market research, policy analysis, and technology research.

#2102  Sticky Note Far East Energy Gas Production Surpasses 2 Million dshade 02/14/14 10:19:43 AM
#2162   Short squeeze? Personally, I'd prefer a big block hebercreeper 04/15/14 11:46:01 PM
#2161   Harnessing Clean Energy from Dirty Fuel hebercreeper 04/14/14 08:26:58 PM
#2160   One day closer to short squeeze. dshade 04/14/14 11:49:04 AM
#2159   hang tough heber, just don't put more in sahd3g 04/11/14 11:44:09 AM
#2158   Hanging tight adding weekly here. One news catalyst dshade 04/10/14 09:25:13 AM
#2157   Years of disappointment here but so many bullish hebercreeper 04/09/14 09:43:25 PM
#2155   shorty trying hard on small MM games dshade 04/08/14 11:50:10 AM
#2154   Reserves report hebercreeper 04/05/14 01:00:18 AM
#2153   Rare opportunities like this. dshade 04/01/14 10:42:44 AM
#2152   The shorter of Standard Bank uses VFIN. He dshade 04/01/14 10:22:37 AM
#2151   Quote from J.Paul Getty surfer44 04/01/14 09:35:32 AM
#2150   Great news! surfer44 04/01/14 09:27:37 AM
#2149   Also the SCB extension to July 15 now. dshade 04/01/14 09:01:07 AM
#2148   "All hands on deck" Megga NEWS fresh out. subslover 04/01/14 08:42:19 AM
#2147   10-k filed hebercreeper 03/31/14 10:44:59 PM
#2146   Short is going to lose this battle dshade 03/31/14 05:41:59 PM
#2144   Pretty confident they have lined up all the dshade 03/21/14 12:56:05 PM
#2143   The financing part is something you, the markets, runncoach 03/21/14 08:12:05 AM
#2142   Nonsense. Production continues and financing is not a problem. dshade 03/21/14 07:59:52 AM
#2141   Management needs to show their cards. No reason hebercreeper 03/20/14 10:03:25 PM
#2140   Management has this under radar but not for dshade 03/20/14 03:37:44 PM
#2139   The takeover candidate is lurking. SINOPEC?? hmmmm dshade 03/19/14 04:22:00 PM
#2138   I agree but it will ultimately come down hebercreeper 03/18/14 06:22:30 PM
#2137   I think it's a "all hands on deck" surfer44 03/18/14 01:37:55 PM
#2136   Very interesting post on another forum: hebercreeper 03/18/14 01:14:55 PM
#2135   Thanks. I know this stock has been hebercreeper 03/17/14 09:51:23 PM
#2134   Appears the final reserve report didn't get delivered runncoach 03/17/14 05:44:26 PM
#2133   Money for what? runncoach 03/17/14 08:30:04 AM
#2132   China Landbridge in Hostile Bid for Australian Firm hebercreeper 03/15/14 10:26:09 PM
#2131   You do realize they have cash? dshade 03/14/14 01:54:14 PM
#2130   Yes today's PR didn't put much to rest. runncoach 03/13/14 09:14:56 PM
#2129   Oops, meant for my last reply to runn hebercreeper 03/13/14 08:43:16 PM
#2128   You can't rule anything out but SEC reserves runncoach 03/13/14 07:24:17 PM
#2127   You think Mike might possibly be waiting on hebercreeper 03/13/14 07:08:54 PM
#2126   Until we get funding for a 2014 drilling runncoach 03/13/14 04:22:23 PM
#2125   No dilution. Just one short against Standard dshade 03/13/14 03:50:10 PM
#2124   RED on Great News! company must turn powerbattles 03/13/14 03:28:00 PM
#2123   FEEC is way under radar but is a dshade 03/13/14 02:56:24 PM
#2122   Damn, even with strong growth, we can't seem sahd3g 03/13/14 02:49:47 PM
#2121   Production Update News hebercreeper 03/13/14 02:25:51 PM
#2120   creeper, Will pass info along. runncoach 03/11/14 07:38:44 AM
#2119   This is a very good read on the hebercreeper 03/06/14 08:25:36 PM
#2118   The country would limit coal use, increase its hebercreeper 03/06/14 01:43:38 PM
#2117   CHINA DECLARES WAR ON POLLUTION! off the JUST 10-11-12 03/06/14 01:17:45 PM
#2116   Peer Sino Oil & Gas major received vote hebercreeper 03/06/14 11:17:47 AM
#2115   FEEC looking good... hope this is just the sahd3g 03/05/14 03:37:06 PM
#2114   on board adding... JUST 10-11-12 03/05/14 03:11:16 PM
#2113   Thought I'd pop in to say hi :-) surfer44 03/05/14 01:58:26 PM
#2112   That's right and this time we start smoking higher subslover 03/05/14 01:38:26 PM
#2111   China approving new 5 year plan. Cleaner fuel dshade 03/05/14 01:31:23 PM