Far East Energy Announces Completion of Gathering System, Nomination of First Gas Sales, and Anticipated Payment
Far East Energy (OTC:FEEC) announced that they have started the process for nomination of initial gas for sales with their partner CUCBM.
Far East Energy (OTC:FEEC) announced that they have started the process for nomination of initial gas for sales with their partner CUCBM.
The press release is quoted as saying:
In accordance with the Gas Sales Agreement, Shanxi Guoxin Energy Development Group, the Purchaser, will prepay for gas volumes each month when volumes are nominated. Thus, it is anticipated that first payment will occur before December 31, as previously projected by Far East. The initial nomination of gas covers gas produced from wells that will be connected to the gathering system before year-end.
Michael R. McElwrath, Far East CEO and President said:
“Clearly the Company is pleased to report that in the 3.5 months since its 2010/2011 drilling program raise, 16 of the 60 wells planned at that time have either been drilled and are being fraced, or are currently underway, keeping us precisely on schedule. However, the biggest news of all is that the gas nomination process has commenced, and first payment for gas should be forthcoming before year-end.” McElwrath added, “FEEC continues to check off major milestones according to projections, and we wish to thank all of our investors for their support.”