Far East Energy Announces Registered Direct Placement

< BACK TO ENERGY starstarstarstarstar   Conservation - Energy Press Release
21st August 2010, 07:28am - Views: 983





Conservation Energy Far East Energy Corporation 1 image

Conservation Energy Far East Energy Corporation 2 image










MEDIA RELEASE PR40920


Far East Energy Announces Registered Direct Placement


HOUSTON, Aug. 21 /PRNewswire-AsiaNet/ --


    Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today that it

has agreed to sell an aggregate of approximately 105.5 million shares of its common

stock at a price of $0.33 per share for aggregate gross proceeds of approximately

$34.8 million in a registered direct offering.


    "We intend to use the net proceeds from the offering to continue the

drilling, completion and testing of our coalbed methane wells in China and

for general corporate purposes," said Michael R. McElwrath, Chief Executive

Officer of Far East. Mr. McElwrath added, "We are particularly pleased with

the quality of the investor group, which consists primarily of several large,

fundamental, long-only mutual funds, with exceptional reputations in the

investment and energy communities."


    The offering is made pursuant to the Form S-3 shelf registration

statement declared effective by the SEC on November 4, 2009. A prospectus

supplement related to the public offering has been filed with the SEC. The

offering is expected to close on or about August 24, 2010, subject to the

satisfaction of customary closing conditions.


    Macquarie Capital (USA), Inc. acted as Far East's placement agent in

connection with the offering.


    This press release does not constitute an offer to sell or the

solicitation of an offer to buy, nor shall there be any sale of these

securities in any jurisdiction or to any person in which or to whom such

offer, solicitation or sale would be unlawful. Any offer will be made only by

means of a prospectus, including a prospectus supplement, forming a part of

the effective registration statement. Copies of the prospectus supplement

together with the accompanying prospectus can be obtained at the SEC's

website at http://www.sec.gov or from Macquarie Capital (USA) Inc., 125 West

55th Street, New York, NY 10019.


    Far East Energy Corporation

    Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan

City, China, Far East Energy Corporation is focused on coal-bed methane

exploration and development in China.


    Statements contained in this press release that state the intentions,

hopes, beliefs, anticipations, expectations or predictions of the future of

Far East Energy Corporation and its management are forward-looking statements

within the meaning of Section 27A of the Securities Act of 1933, as amended,

and Section 21E of the Securities Exchange Act of 1934, as amended. It is

important to note that any such forward-looking statements are not guarantees

of future performance and involve a number of risks and uncertainties. Actual

results could differ materially from those projected in such forward-looking

statements. Factors that could cause actual results to differ materially from

those projected in such forward-looking statements include: there can be no

assurance as to the volume of gas that is ultimately produced or sold from

our wells; due to limitations under Chinese law, we may have only limited

rights to enforce the gas sales agreement between Shanxi Province Guoxin

Conservation Energy Far East Energy Corporation 3 image

Energy Development Group Limited and China United Coalbed Methane

Corporation, Ltd., to which we are an express beneficiary; pipelines and

gathering systems needed to transport our gas may not be constructed, or if

constructed may not be timely, or their routes may differ from those

anticipated; certain of the proposed transactions with Arrow Energy

International Pte Ltd ("Arrow") may not close on a timely basis or at all,

including due to a failure to satisfy closing conditions or otherwise; the

anticipated benefits to us of the transactions with Arrow may not be

realized; the final amounts received by us from Arrow may be different than

anticipated; Arrow may exercise its right to terminate the Farmout Agreement

at any time; the Chinese Ministry of Commerce ("MOC") may not approve the

extension of the Qinnan PSC on a timely basis or at all; our Chinese partner

companies or the MOC may require certain changes to the terms and conditions

of our PSC in conjunction with their approval of any extension of the Qinnan

PSC; our lack of operating history; limited and potentially inadequate

management of our cash resources; the pipelines currently under consideration

may not be constructed, or if constructed may not be timely, or their routes

may differ from those currently anticipated; the pipeline and local

distribution/compressed natural gas companies may decline to purchase or take

our gas, or the timing of any definitive agreement may take longer than

anticipated and the terms may not as advantageous as expected; risk and

uncertainties associated with exploration, development and production of

coalbed methane; expropriation and other risks associated with foreign

operations; disruptions in capital markets effecting fundraising; matters

affecting the energy industry generally; lack of availability of oil and gas

field goods and services; environmental risks; drilling and production risks;

changes in laws or regulations affecting our operations, as well as other

risks described in our 2009 Annual Report and subsequent filings with the

SEC.


SOURCE: Far East Energy Corporation


    CONTACT: David Nahmias, 

             +1-901-218-7770, 

             dnahmias@fareastenergy.com, 


             or Bruce Huff, 

             +1-832-598-0470,

             bhuff@fareastenergy.com, 


             or Catherine Gay,

             +1-832-598-0470, 

             cgay@fareastenergy.com, 


             all of Far East Energy Corporation


To view this and other AsiaNet releases please visit http://www.asianetnews.net






news articles logo NEWS ARTICLES
Contact News Articles |Remove this article