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Attention Business And Energy Editors
Far East Energy Announces $5 Million Registered Direct Offering
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HOUSTON, March 9 /CNW/ -- Far East Energy Corporation (OTC Bulletin
Board: FEEC) announced today that it has entered into definitive agreements
with certain institutional investors (the "Investors") to sell in a registered
direct offering an aggregate of approximately 11.66 million shares of its
common stock at a price of $0.43 per share for aggregate gross proceeds of
$5.01 million. In addition, Far East will, at closing, issue to the Investors
warrants, which will become exercisable after closing for a period of 5 years
and will provide the holders the right to purchase up to an additional 4.66
million shares in the aggregate at an exercise price of $0.80 per share. If
fully exercised for cash, the warrants would result in additional gross
proceeds to the company of approximately $3.73 million.
"We are very pleased to welcome new institutional investors to Far East,"
noted Michael R. McElwrath, CEO of Far East. "The participation of major
institutional investors in this offering highlights the confidence the
investor community has put in our business strategy and our future growth. We
look forward to closing this offering and having the capital we need to
execute our business plan, including our Shouyang 1H Pilot Area drilling
program," added McElwrath.
The offering is made pursuant to the Form S-3 shelf registration
statement filed by Far East with the Securities and Exchange Commission (the
"SEC") and declared effective by the SEC on November 4, 2009. A prospectus
supplement related to the public offering will be filed with the SEC. The
offering is expected to close on or about March 11, 2010, subject to the
satisfaction of customary closing conditions.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM), acted as Far East's exclusive 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 Rodman & Renshaw, LLC, 1251 Avenue of the
Americas, 20th Floor, New York, NY 10020.
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Far East Energy Corporation
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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: the mentioned
offering of securities may not be consummated; pipelines to carry our natural
gas produced may not be constructed, or if constructed may not be timely, or
their routes may differ from those anticipated; the pipeline and local
distribution/CNG 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; the gas produced at our wells may
not increase to commercially viable quantities or may decrease; we may have
insufficient capital to fund our planned drilling or to develop the Shouyang
field; the high permeability and high gas content may not be as widespread as
anticipated; weather may significantly delay the planned drilling program;
wells may be damaged or adversely impacted during the production process,
resulting in decreases in the amount of gas produced, or that can be produced;
certain proposed transactions with Arrow Energy 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 transactions with Arrow may not
be realized; the final amounts received by us from Arrow may be different than
anticipated; Chinese Ministry of Commerce (MOFCOM) may not approve the
extensions of the Qinnan Production Sharing Contract (Qinnan PSC) on a timely
basis or at all; PetroChina or MOFCOM may require certain changes to the terms
and conditions of the Qinnan PSC in conjunction with their approval of any
extension; our lack of operating history; limited and potentially inadequate
management of our cash resources; risk and uncertainties associated with
exploration, development and production of coal-bed 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 Annual Report on Form 10-K
for 2008 and subsequent filings with the SEC.
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/For further information: 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 Web Site:
http://www.fareastenergy.com/
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