Far East Energy Secures Funding.Energy Editors/Business Editors HOUSTON--(BUSINESS WIRE)--Aug. 26, 2003 Far East Energy Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FEEC FEEC Faculty of Electrical Engineering and Communication )(Berlin:FEN) announced today that it has raised equity private placements totaling $5.7 million approximately, and has additional commitments for $1.5 million. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of these funds are to be applied to work programs on the following joint ventures with ConocoPhillips and China United Coalbed Methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. Co. (CUCBM) and a U.S. project in Montana in which FEEC has a 100% interest. Shanxi Province, China This project comprises over 1 million acres. The estimated gas in place resource is 16-25 trillion cubic feet (TCF See Trenton Computer Festival. ). Far East Energy can earn a 40%-70% interest in what could be one of the largest CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter natural gas fields This list of natural gas fields includes major fields of the past and present. N.B. Some of the items listed are basins or projects that comprise many fields (e.g. Sakhalin has three fields: Chayvo, Odoptu, and Arkutun-Dagi). in the world if fully developed. Far East Energy will fracture and test the gas flows from three (3) wells drilled by ConocoPhillips. Technical data collected and analyzed by ConocoPhillips is very positive. Local gas pipelines infrastructure is now currently in place with more pipelines being developed. Yunnan Province Noun 1. Yunnan province - a province of southern China Yunnan Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most populous country in the world , China Comprises of two projects. The first--Enhong coalfield--is 167,000 acres with a coal resource of 8.9 billion tonnes with an estimated 2.1 TCF of gas resource. Far East Energy has a 60% interest in this field. Extensive technical work by China United makes this property development achievable. Two wells are scheduled to be drilled in 2003. The second project--Laochang coalfield--comprises 98,000 acres and has coal reserves of 6.5 billion tonnes containing an estimated gas resource of 3 TCF. Far East Energy has a 60% interest in this field. One test well is scheduled for 2003. In the U.S., FEEC has one property in Montana. The Montana shallow gas sand project is a 100% Far East interest venture, which comprises 165,000 acres with an estimated recoverable resource of 225 billion cubic feet of natural gas. The project is a field extension of Bowdoin field, which has produced over 250 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter . It is located adjacent to the Northern Border Interstate pipeline, which delivers natural gas to the Chicago area market. Cash flow from this project is expected in 2004. Initially, ten (10) wells are planned to drill in 2003. Joe Cooper, president and COO, stated, "The successful placement of this private equity round will allow the company to complete its drilling commitments and other obligations for the next twelve months." Far East Energy is exploring and developing three of the largest coalbed methane (CBM) projects in the world with partners ConocoPhillips and China United Coalbed Methane Co. (China United). Far East Energy's interests represent over 10 trillion cubic feet (TCF) of natural gas resource within these three projects, of which almost 7 TCF is potentially recoverable. Far East also has a shallow gas field extension project in Montana U.S.A., adjacent to a major interstate pipeline. Far East Energy's business objective is to be a leading energy company generating significant growth with low operating and development costs to build shareholder value. |
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