Attached files
file | filename |
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8-K - FAR EAST ENERGY CORP | v194784_8-k.htm |
EX-5.1 - FAR EAST ENERGY CORP | v194784_ex5-1.htm |
EX-10.1 - FAR EAST ENERGY CORP | v194784_ex10-1.htm |
Exhibit
99.1
Far
East Energy Announces Registered Direct Placement
Houston, Texas – August 20,
2010 – Far East Energy Corporation (OTC BB: 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 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.
Contact:
David
Nahmias - 901-218-7770
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Bruce
Huff – 832-598-0470
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Far
East Energy Corporation
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Far
East Energy Corporation
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dnahmias@fareastenergy.com
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bhuff@fareastenergy.com
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Catherine
Gay – 832-598-0470
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Far
East Energy Corporation
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cgay@fareastenergy.com
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