Trippled up my FEEC position today with the powerful 100DMA breakout volume~ Anyone else adding this one? Nice news out :)
HOUSTON, Nov. 17, 2011, 2011 (Canada NewsWire via COMTEX) --
Far East Energy Corporation (OTCBB:FEEC) announced today the signing of a Modification Agreement extending the exploration period of its Shouyang Block Production Sharing Contract. The Modification Agreement signed by Far East Energy Bermuda and China United Coal Bed Methane Corporation (CUCBM) will now be forwarded to the Ministry of Commerce (MofCom) of the People's Republic of China (PRC) for formal approval. Commenting on the successful conclusion of the Modification Agreement, Wu Weifeng, President of CUCBM stated, "Far East Energy has long been one of our best and most diligent foreign partners, and we are very pleased to continue our strong working relationship with them. CUCBM is now fifty percent owned by CNOOC, one of China's largest international oil companies, and CNOOC has recently announced a strong focus on unconventional resources such as coalbed methane and shale gas as key elements of its growth strategy. This extension and Modification Agreement provides not only for our ongoing cooperation with Far East in the Shouyang CBM Project, but also may present possibilities for CUCBM and Far East to pursue shale gas and other unconventional gas opportunities, as well as new coalbed methane opportunities."
Michael McElwrath, CEO and President of Far East Energy Corporation, commented, "CUCBM has pioneered coalbed methane exploration in China. It has been an exceptional partner through the years and, with CNOOC's backing, is now becoming even more supportive as it opens a new chapter in CBM development in China." McElwrath continued, "We are very happy to secure this extension and are very pleased with the terms of the Modification Agreement. Far East can now proceed apace with its efforts to finalize pilot testing and seek to convert portions of the Shouyang Block into the development and production phases. Recent step-out exploration wells have revealed a broad expanse of high permeability areas, and with the extension, all the key pieces are now in place to pursue stepwise expansion across the block."
Under the terms of the Modification Agreement, when final MofCom approval is received, Far East will relinquish approximately 306.5 square kilometers (approximately 75,737.80 acres) of the Shouyang Block, leaving a balance of approximately 1656.5 square kilometers (approximately 411,554 acres), or 84% of the original acreage, still covered by the Shouyang Production Sharing Contract. Portions of the acreage to be relinquished are considered to be marginal or non-prospective.
An area of approximately 100 square kilometers (24,710.54 acres) is currently pending reserves certification by the Chinese authorities, and encompasses the 1-H Pilot Area as well as some nearby step-out exploration or parameter wells. This pending Chinese reserves area constitutes the basis of a potential Overall Development Plan area, within which CUCBM and Far East would normally be entitled to share in development with CUCBM being able to claim up to a 30% participating interest, and Far East retaining the balance. Approximately 35 square kilometers (8,648.69 acres) out of the 306.5 square kilometers (75,737.80 acres) being relinquished is part of this pending Chinese reserves area. In return for Far East relinquishing its interest in this area, CUCBM has agreed that Far East can retain a 100% participating interest in the remaining pending reserves area of approximately 65 square kilometers (approximately 16,061.85 acres), including all of the wells in the 1-H pilot Area.
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.
News 
Market Data 
Discover 
