NEW YORK CITY, July 20, 2004 (PRIMEZONE) -- The following opinion is being issued by Investrend Research Syndicate:
Far East Energy Co. (OTCBB:FEEC) "continues to meet the financial requirements that pertain to the projects in China, per its agreements with China United Coalbed Methane Corporation Ltd. and ConocoPhillips (NYSE:COP)," said Investrend Research analyst Gary Vassalotti in a Benchmark Update report.
Vassalotti said plans "include fracture and testing of two wells in each of the two projects in China during 2004. Far East may elect to drill and test its first horizontal well on the Dragon Project to satisfy the requirements for the second phase of the project in late 2004 or early 2005.
"Far East has negotiated the utilization of horizontal wells to satisfy the requirements of each of its contracts in China under favorable terms."
Vassalotti said Far East Energy ended the quarter with a cash balance of $1,256,000, down from $2,326,000 December 31, 2003, a decline of 46%. "As FEEC still has no operating earnings, its Cash Flow is understandably negative. As the company brings wells online and begins sales the cash flow picture will undoubtedly change."
Also this quarter FEEC obtained cash utilizing a private placement of securities and sold a 'unit' consisting of 10,000 shares of stock and warrants to purchase another 10,000 shares at $2.50 per share exercisable over the next two years. This unit sale raised $20,000 in cash during the first quarter.
These unit sales continued after the quarter end of 3/31/04, and the company has sold an additional 102 units and realized $2.04 million in new equity.
Vassalotti said the total accumulated expenses for the development and exploration of its properties since the date of incorporation is $7,164,000.
The company also faces a number of risks, contained in the full report, including important disclosures and disclaimers, available at http://www.investrendresearch.com, and at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238
Far East Energy. is enrolled in Investrend Research's pioneering professional research program, which facilitates independent analysts to provide financial coverage for shareholders in companies that otherwise would have little or no analyst following. Enrollment fees for Benchmark coverage are $13,800, and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.
Anyone interested in receiving alerts regarding Far East research should email contact@investrend.com with "FEEC" in the subject line.
Far East Energy Corporation, 400 N. Sam Houston Parkway, Suite 205, Houston, Texas 77060, Phone: 713.586.1900, Fax: 713.586.1899, Michael McElwrath, E-mail: contactus@fareastenergy.com Web site: http://www.fareastenergy.com
Investrend Research Div., Investrend Communications, Inc.: (718) 896-5060, R. Hempel, email: info@investrend.com. Web site: www.investrendresearch.com