Far East Energy Corp. (OTCBB: FEEC), the US-listed company that operates the Shouyang coalbed methane (CBM) production sharing contract (Shouyang PSC) in Shanxi Province, People's Republic of China, has provided an operations update.
Production volumes from the Shouyang PSC remained consistent during October, November, and December 2014 at roughly 1.84 million cubic feet per day (Mcf/d), as compared to production rates of 1.92 Mcf/d as last reported on Sept. 15, 2014.
Management has undertaken intensive efforts to control and reduce operating and overhead costs, including the shutting-in of certain wells that were not adding to gas sales, and this contributes to the reduced production volumes. However, sales volume remained steady at an average of 1.54 Mcf/d during the fourth quarter of 2014 compared to 1.54 Mcf/d for the third quarter of 2014.
The company also reported that the maturity date of the bridge facility with Standard Chartered Bank has been extended to April 30, from the previous maturity date of March 31.