Far East Energy Increases Numbers in Shouyang Block

Far East Energy Corp. has announced the results of an independent report prepared by Netherland, Sewell & Associates evaluating, as of June 30, 2011, the net contingent gas resources and Net Present Value at 10% Discount of the net contingent cash flow for the three target coal seams in Far East Energy’s 485,000 acre (1960 sq kms) Shouyang Block, situated in Shanxi Province, China.

The report, which is subject to certain limitations and assumptions described therein, gives a Best Estimate of NPV10 of $1.23 billion, which reflects a 66% increase over the previously prepared NSAI report as of December 2010; a High Estimate of $2.11 billion, which reflects a 44% increase; and a Low Estimate of $319.30 million, which reflects a 143% increase.

'Obviously, this is an exhilarating report. It reflects the great potential of the Shouyang Block project,' said Michael R. McElwrath, CEO and President of Far East. 'These estimates not only reinforce the belief we have had in this project since the beginning, but it also better defines the economic potential of the Shouyang Block.

Source: Far East Energy