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(PRNewswire, Oct 31, 2006) Urges Stockholders to Vote FOR Board of Director Nominees at 2006 Annual Meeting Says China wells have a rare combination of high-permeability coupled with high gas content; says with Board of Director authorized financing in place, Company believes it is on right track to achieve significant gas production HOUSTON,
Oct. 30 /PRNewswire-FirstCall/ -- Far East Energy Corporation(OTC Bulletin Board: FEEC) announced today that the Company's Notice of Annual Meeting of Stockholders and related Proxy Materials have been filed with the SEC and will be mailed to all stockholders. The Annual Meeting will be held on December 15, 2006 in Houston, Texas.
The Company also today released a letter to all stockholders. In the
letter, the Company notes that it believes it:
* Is on the right track to potentially achieve significant gas production, and
* Has found that its wells have a rare combination of high permeability coupled with high gas content which generally results in higher gas production sustainable for a longer period of time.
The Company urges all stockholders to vote FOR the Board of Directors'
nominees.
The full text of the letter follows:
Dear Stockholder:
Please find enclosed our proxy statement and proxy card for the 2006
Annual Meeting of Stockholders of Far East Energy Corporation scheduled to
be held on December 15, 2006.
Your participation in the Annual Meeting is very important, no matter
how many shares you own. If you do not plan to attend the Meeting in
person, please make sure your voice is heard by signing, dating and
returning the enclosed white proxy card.
These are exciting times for your Company and we believe that we are on
the right track to potentially achieve significant gas production. For
example:
* With our first horizontal coalbed methane wells, we believe we have
discovered an uncommon and highly desirable combination of high
permeability and high gas content. High permeability in conjunction
with high gas content and sufficient pressure generally results in
higher gas production rates sustainable over a longer period of time.
The gas content and permeability in our initial wells is very high
based on well data obtained to date. High permeability allows gas to
move with greater ease through the coal and from greater distances to
the well, and can result in prolific wells similar to those in
America's San Juan Basin or Australia's Fairview Field. High
permeability, however, also means that water can move to the well
from greater distances and this will cause it to take longer to
dewater. The key to making high permeability work to our advantage
and to achieving maximum production at the earliest possible date is
to drill a pattern of additional wells in the area of our first wells
as rapidly as possible.
* The Company began drilling its fourth horizontal well in September,
locating that well close to the Number 1 and 3 wells as part of the
cluster being developed for dewatering and production purposes. This
well is nearing completion.
* Australia's Fairview Field, which is known in the industry to be a
very productive field for coalbed methane production, may be a good
analog to what we have discovered in our Shouyang Area. The Fairview
Field's wells were steadily drilled in a pattern around the first
wells, which resulted in enhanced dewatering and wells that initially
came in at a slower rate and in lower amounts because of the
lengthier dewatering period, steadily ramped up to high rates
sustained over many years. Of course, until we achieve sustained
production from our wells, we cannot be sure if the performance of
our wells will mirror that of the Fairview Field.
We also recently announced that we completed a common stock placement
resulting in approximately $17 million of gross proceeds. The financing was
a part of our Board's capital raising plan that began in the early summer
of 2006. This additional capital is intended to finance the drilling of a
number of additional wells near the promising area of our Shouyang Block,
as well as the drilling of wells required to retain our acreage position in
the Qinnan Block of the Shanxi Province and in Yunnan Province.
We are pleased to report that this financing was completed at a
discount to the market price of our common stock at the time of pricing of
only 1.6% with no warrants attached. Additionally, we look forward to the
time when our capital needs may be met by debt type financing.
Our nominees for the Board of Directors and our management team are
well qualified to continue to capitalize on the high potential of our coal
bed methane projects in China. They are highly experienced in gas
exploration and production, here and in China, and will work together
closely with senior management to develop and implement the Company's
drilling, gas sales and China government relations strategy designed to
build long-term value for all stockholders.
In that regard, we are pleased to announce that C.P. Chiang has agreed
to serve on our Board, if elected at the Annual Meeting. Mr. Chiang most
recently served as the China Project Manager/Country Manager of Burlington
Resources until his retirement in 2006. In that position he was responsible
for managing the operations and activities of Burlington Resources in China
and worked closely and negotiated with various Chinese governmental
organizations. He has also worked for various other oil and gas companies,
including British Gas E&P, Inc., Tenneco Oil Production and Exploration and
Exxon Oil Company, now known as Exxon Mobil Corporation.
Collectively, our nominees have over 170 years of experience in the oil
and gas industry.
We urge you to vote FOR the Board of Directors nominees by signing and submitting the WHITE proxy card TODAY.
Thank you for your continued support. If you have any questions or
require any assistance voting your shares, please contact our proxy
solicitor, Innisfree M&A Incorporated, toll-free at 1.888.750.5834.
Sincerely,
Michael R. McElwrath
President and Chief Executive Officer
About Far East Energy
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 in China through its agreements with
ConocoPhillips and China United Coalbed Methane Company, Ltd. (CUCBM).
China Acreage Overview
The Shouyang and Qinnan Blocks are part of the 4,280 square kilometer
(1,057,650 acres) coalbed methane (CBM) project in Shanxi Province that Far
East Energy holds under farmouts from ConocoPhillips. Including its 1,073
square kilometer project in Yunnan Province, the coalbed methane
concessions of Far East Energy contain a land mass slightly larger than the
State of Delaware.
Far East Energy is scheduled to hold its 2006 annual meeting of
stockholders on December 15, 2006, and filed a definitive proxy statement
with the Securities and Exchange Commission on October 27, 2006 in
connection with the meeting. It is anticipated that the proxy statement
will first be mailed to stockholders on or about October 31, 2006. Our
stockholders are strongly advised to read the proxy statement and the
accompanying WHITE proxy card and any other relevant documents filed with
the Securities and Exchange Commission when they become available because
they will contain important information. Stockholders will be able to
obtain the proxy statement as well as any amendments or supplements to the
proxy statement and any other documents that we file with the Securities
and Exchange Commission for free on the Securities and Exchange
Commission's website. Their website is located at http://www.sec.gov. Copies of the proxy statement and any amendments and supplements to the proxy
statement will also be available for free at our website at
http://www.fareastenergy.com or by writing to the Secretary of Far East Energy,400 N. Sam Houston Parkway East, Suite 205, Houston, Texas 77060. You can also request copies of the proxy materials, when they become available,from our proxy solicitor, Innisfree M&A Incorporated. Their toll-free
number is 1-888- 750-5834. Detailed information regarding the names,
affiliations and interests of individuals who may be deemed participants in
the solicitation of proxies of our stockholders is available on Exhibit A
to the Definitive Proxy Statement on Schedule 14A we filed with the
Securities and Exchange Commission on October 27, 2006.
source:PRNewswire |